ORANGE COUNTY REAL ESTATE MARKET UPDATE – SEPTEMBER 2025
Inventory is up, buyer demand is down, and the market has slowed to its lowest pace since 2018. Mortgage rates near 7% continue to challenge buyers, while home prices have grown far faster than incomes, making affordability the biggest hurdle. As the market shifts into the Autumn season, here’s a closer look at what’s happening in Orange County real estate today.
INVENTORY
Active listings total 4,869—down 142 homes (3%) over the past two weeks but still 35% higher than this time last year. Inventory remains below pre-pandemic norms of 6,500+ homes. With kids back in school and summer vacations over, the Autumn Market is underway, and listings are expected to continue tapering through fall into the holiday season.
DEMAND
Pending sales are 1,559—93 fewer than two weeks ago, marking the largest demand drop of 2025. Mortgage rates between 6.5% and 7.5% continue to keep many buyers on the sidelines. Unless rates move closer to 6%, buyer activity is expected to gradually taper through year-end.
MARKET TIME
Expected Market Time is 94 days, slower than last year’s 73 and the pre-COVID average of 82. While the pace has slowed, the market remains stable and far from distressed conditions.
SELLERS
With fewer buyers and shifting inventory, pricing and presentation are critical. Homes that are staged and priced strategically continue to attract qualified offers, particularly in sought-after areas such as Newport Beach, Laguna Beach, and Irvine.
BUYERS
Buyers now have more options, but affordability remains the biggest hurdle. Being pre-approved and ready to act quickly when the right property appears is essential. Even small drops in mortgage rates could create new opportunities.
FINAL THOUGHTS
The Orange County market is slowing but remains balanced. Buyers can take advantage of increased options and negotiating power, while sellers need to focus on strategic pricing and strong presentation. Staying informed and prepared will be key to navigating the months ahead.
