Orange County Real Estate Market Update – May 2025
Orange County’s housing market is showing signs of a slowdown—right in the middle of what’s typically the most active season of the year. In the latest update from Tim Smith, trends point to a market that’s cooling rather than heating up.
Inventory Sees a Significant Surge
Active listings are up 6% in the past two weeks and 31% since early March, adding over 1,000 homes to the market. Total inventory now sits at 4,186—the highest since September 2020. It’s the biggest jump since 2010, driven by homeowners who’ve waited years to list.
Buyer Demand Is Building
Pending sales are up 8% from last year, and lower mortgage rates are helping bring more buyers back. If rates dip below 6.5%, expect further activity as the market peaks this spring.
Demand Continues to Decline
Despite a slight dip in mortgage rates (from 6.98% to 6.82%), buyer demand is down 3% in two weeks and 9% year-over-year. Affordability and economic uncertainty are holding buyers back, with demand now nearly 80% lower than pre-COVID averages.
Homes Are Taking Longer to Sell
Expected market time has climbed to 81 days, up from 62 six weeks ago—and nearly double last year’s 41-day average. Homes are still selling, but at a slower pace. Sellers need to be smart with pricing and presentation to stand out.
Active and Upcoming Listings by Area
These numbers reflect both active single-family homes and those marked as “coming soon”:
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Homes for Sale in Orange County: 2,821
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Homes for Sale in Newport Beach: 182
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Homes for Sale in Newport Coast: 36
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Homes for Sale in Corona del Mar: 49
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Homes for Sale in Laguna Beach: 193
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Homes for Sale in Dana Point: 74
Orange County Luxury Market Snapshot
There are 87 active listings over $15 million in Orange County, including 44 priced above $20 million. So far this year, 19 homes in this range have sold, 7 of them over $20 million. The high-end market remains active but selective.
Looking Ahead
The market is shifting into a more balanced—yet slower—environment. It’s no longer a seller’s market, but it hasn’t fully transitioned to a buyer’s market either. With rising inventory and cautious demand, sellers will face more competition, and buyers will have more options—though top-tier homes still move quickly. Unless mortgage rates fall significantly, this trend of slower, steadier activity is expected to continue into summer.
