The Orange County housing market is showing a growing divide between detached homes and condos and townhomes.
While the overall market remains slower, detached homes continue to outperform, supported by tighter inventory, faster market times, and stronger price growth.
DETACHED HOMES CONTINUE TO OUTPERFORM
Condos and townhomes have traditionally been the more affordable entry point into homeownership, but rising HOA dues, insurance costs, financing requirements, and elevated mortgage rates are putting greater pressure on attached-home buyers.
The median attached-home value is approximately $760,000, compared with roughly $1.3 million for detached homes. However, median HOA dues among attached sales were $507 per month.
The difference is showing up in values. Year over year, attached homes are up just 0.4%, compared with 1.9% for detached homes.
Why the Condo Slowdown Matters
The two markets are connected. Condo and townhome owners often become future move-up buyers for detached homes.
If attached properties become harder to afford, finance, or resell, that pipeline can slow. For now, detached homes remain the stronger market, but continued weakness in the attached segment is worth watching.
ORANGE COUNTY INVENTORY REMAINS LIMITED
Active inventory increased slightly over the past two weeks to 5,046 homes.
That is nearly unchanged from last year but still 34% below the pre-COVID average of 6,753 homes.
Inventory may also be approaching its seasonal peak. If supply begins to decline, market conditions could begin to stabilize as Orange County transitions into the Autumn Market.
Detached Home Inventory Is Down 11%
The bigger distinction is between property types.
Detached-home inventory is down 11% from last year, falling to 2,815 homes, while attached inventory is up 17% to 2,231 properties.
For single-family homeowners, that limited competition continues to provide an important supply advantage.
BUYER DEMAND REMAINS SUBDUED
Buyer demand increased 1% over the past two weeks to 1,494 pending sales, its first increase since early May.
Even so, this remains the lowest end-of-July demand reading since tracking began in 2004.
Mortgage rates around 6.82% continue to limit affordability, particularly for attached-home buyers who must also account for HOA and other ownership costs.
Attached-home demand is down 8% from last year, compared with a 6% decline for detached homes.
EXPECTED MARKET TIME SHOWS TWO DIFFERENT MARKETS
Orange County’s overall Expected Market Time decreased slightly from 102 to 101 days.
For comparison, it was 95 days last year and 78 days during the pre-COVID years.
Detached Homes Are Selling Three Weeks Faster
Detached homes currently have an Expected Market Time of 93 days, slightly faster than the 98-day pace one year ago.
Condos and townhomes are taking 114 days, compared with 90 days last year.
That means attached homes are taking 21 days—or three full weeks—longer to sell than detached homes.
For single-family homeowners, that is an important distinction: while the overall market is slower, detached homes continue to benefit from tighter supply and stronger market performance.
WHAT THIS MEANS FOR BUYERS AND SELLERS
For Sellers: Detached-home sellers remain in the stronger segment of the market, but buyers are selective. Accurate pricing, strong presentation, and strategic marketing remain essential to generating momentum.
For Buyers: Detached-home buyers have fewer options and are competing in a faster market. Condo and townhome buyers may have greater negotiating leverage, but should carefully evaluate HOA costs, reserves, insurance, and financing requirements.
THE BOTTOM LINE
Orange County is increasingly operating as two different housing markets.
Condos and townhomes are facing greater affordability pressures, higher inventory, and longer market times. Detached homes continue to benefit from limited supply, faster sales, and stronger price growth.
The attached-home slowdown is worth monitoring because today’s condo owners often become tomorrow’s move-up buyers. For now, however, detached homes remain the stronger segment of the Orange County housing market.
If you are considering buying or selling in Orange County, reach out for a confidential conversation about your goals and how today’s market conditions apply to your specific situation or start with a complimentary Home Valuation.
