THE WAIT
As we move through summer 2025, Orange County’s housing market continues to slow down, with many sellers finding themselves stuck—waiting longer than expected for offers, and often without success. It’s become clear: this market requires a new level of patience and precision.
More Homes, Fewer Buyers Taking Action
Inventory has climbed significantly compared to the past two years, yet buyer activity has barely shifted. With more homes on the market and only modest changes in demand, sellers are competing harder than ever to stand out. Many homeowners are pricing optimistically, only to discover that buyers aren’t biting unless the property is priced right and move-in ready.
Homes that miss the mark on pricing, presentation, or location are sitting on the market—often for months. This is especially true in both the luxury segment and more affordable ranges under $750K, where even well-located homes are waiting for traction.
Many Sellers Are Stepping Back
With the summer season nearing its end and back-to-school season approaching, more sellers are pulling their listings altogether. Nearly double the number of homes have been removed from the market this year compared to last year. Some plan to relist in spring; others may be waiting for a more favorable market down the road.
This trend could accelerate as contracts expire and the window for summer closings closes. Unless sellers are willing to price at fair market value, many will likely end the year without a sale.
Buyers: More Options, But No Fire Sale
For buyers, this market brings more inventory to choose from and more negotiating power—but not deep discounts. Sellers aren’t panicking, and most aren’t under pressure to sell fast. The key for buyers is to act realistically: aim for fair market value rather than chasing bargains that don’t exist.
Luxury Market: Slow and Steady
Luxury homes are also lingering longer, with some properties taking 6 months or more to go under contract. While there’s been a slight uptick in activity, high-end buyers remain selective, and timing is everything.
What to Watch Next
As summer wraps up, pricing strategies and mortgage rates will shape what’s next. If rates stay high, buyer momentum will likely fade further through fall. But if rates dip below 6.5% and hold, we may see a small resurgence in demand.
Orange County Housing Summary
- INVENTORY: The active listing inventory in the past couple of weeks increased by 233 homes, up 5%, and now sits at 5,050, its highest level since November 2019. Last year, there were 3,371 homes on the market, 1,679 fewer homes, or 33% less. The 3-year average before COVID (2017-2019) was 6,776, which is 34% higher. From January through June, 25% fewer homes came on the market compared to the 3-year average before COVID (2017-2019), 5,562 less. Yet, 2,192 more sellers came on the market this year than last, and 4,232 more compared to 2023.
- DEMAND: Buyer demand, the number of pending sales over the prior month, increased from 1,565 to 1,584. Last year, there were 1,531 pending sales, 3% lower than today. The 3-year average before COVID (2017-2019) was 2,578, which is 63% higher.
- MARKET TIME: With supply rising much faster than demand, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased slightly from 92 to 96 days in the past couple of weeks, its highest July level since 2011. Last year, it was 66 days, substantially faster than today. The 3-year average before COVID (2017-2019) was 80 days, which is also significantly faster than today.
- LUXURY: In the past two weeks, the Expected Market Time for homes priced between $2.5 million and $4 million decreased from 167 to 161 days. For homes priced between $4 million and $6 million, the Expected Market Time increased from 318 to 320 days. For homes priced above $6 million, the Expected Market Time decreased from 410 to 373 days.
- DISTRESSED HOMES: Short sales and foreclosures combined, comprised only 0.1% of all listings and 0.4% of demand. Only three foreclosures and three short sales are available today in Orange County, with a total of six distressed homes on the active market, down eight from two weeks ago. Last year, eight distressed homes were on the market, identical to today.
- CLOSED SALES: There were 1,828 closed residential resales in June, up 1% compared to June 2024’s 1,809 and nearly unchanged from May 2025. The sales-to-list price ratio was 98.5% for Orange County. Foreclosures accounted for 0.05% of all closed sales, and short sales accounted for 0.05%. That means that 99.9% of all sales were sellers with equity.
Every city and neighborhood in OC behaves differently—and knowing those hyper-local shifts is the key to making smart moves in this market. Reach out today for a no-pressure consultation to discuss your options and create a plan that works in today’s market.
