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The Truth About Orange County’s Market Shift

The Truth About Orange County’s Market Shift


ORANGE COUNTY REAL ESTATE MARKET UPDATE – AUGUST 2025

There has been much discussion about whether home prices will drop or if a correction is imminent. Typically, a market plunge requires three key factors: a flood of available homes, a surge in distressed properties, and weak buyer demand. Right now, only one of these—muted buyer demand—is present. With inventory still low and distressed sales nearly nonexistent, the market remains stable. Let’s dive into the latest data to see what this means for Orange County.

INVENTORY

Active listings total 5,071—up 48% from last year but far below the Great Recession peak of 15,000+. Distressed sales make up less than 0.2% of closings.

DEMAND

Pending sales are 1,604—slightly above last year but 64% below pre-pandemic levels. Mortgage rates recently dropped to 6.57%, potentially sparking more buyer interest if they fall further.

MARKET TIME

Expected market time is 95 days, slower than last year’s 67 and pre-COVID average of 78. Condos sell faster (90 days) than detached homes (98 days).

SELLERS

More homes and fewer buyers mean strategic pricing is key. Prices remain stable with minimal distressed sales.

BUYERS

More options and some leverage exist, but competition remains for well-priced homes. Lower rates could increase demand.

COASTAL SNAPSHOT

Luxury inventory in Orange County is rising faster than it’s selling—especially at the $15M+ level.

Total active single-family homes in OC: 5,071

Single-family homes for sale in key coastal areas:

  • Newport Beach homes for sale: 187
  • Newport Coast homes for sale: 47
  • Corona del Mar homes for sale: 62
  • Laguna Beach homes for sale: 173
  • Dana Point homes for sale: 76

Orange County Luxury Market Activity:

  • Active listings priced $15,000,000 or higher = 87 homes
  • Active listings priced $20,000,000 or higher = 44 homes
  • Year-to-date closed listings $15,000,000 or higher = 31 homes
  • Year-to-date closed listings $20,000,000 or higher = 13 homes

FINAL THOUGHTS

The Orange County market remains balanced but leans slightly toward buyers as demand softens and inventory grows modestly. Sellers should focus on pricing and presentation, while buyers can take advantage of increased options—especially if mortgage rates continue to ease. Staying informed and prepared will be key in navigating the months ahead.

Together

Tim Smith Real Estate Group are dedicated to helping you find your dream home and assisting with any selling needs you may have. Contact us today to start your home searching journey!

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