Monthly Market Update

Orange County’s housing market is shifting, but not collapsing. Inventory has risen to 5,071 active listings (48% higher than last year) yet remains far below Great Recession levels, and distressed sales are almost nonexistent at just 0.2% of closings. Prices aren’t plunging because supply is still relatively tight, but muted buyer demand, held back by mortgage rates near 7% for the past 34 months, is slowing the pace. Pending sales remain 64% below pre-pandemic norms, though a recent dip in rates to 6.5%, the lowest since last October, could draw more buyers back into the market.

The expected market time is now 95 days, signaling a slightly buyer-leaning but balanced environment. Sellers should focus on strategic pricing and standout presentation to attract offers, while buyers enjoy more choices and leverage than in recent years. If rates continue to fall, competition will increase quickly, making now a potential window of opportunity for both sides before the market tightens again.

Every home has a unique story and the Smith Group would be honored to tell yours. We understand luxury real estate in Orange County and have the numbers to prove it. Our primary objective is to partner with you and achieve the highest net proceeds as quickly as possible.