The most buyer-friendly moment we’ve seen in years. But this won’t last long!
The Orange County housing market is finishing the year on solid ground, with improved affordability and steady demand. After spending much of 2024 above 7%, mortgage rates have now held below 6.5% for nearly two months—the lowest in over a year—and are projected to stay in this range into early 2026. This drop has boosted buyer confidence, saving roughly $550 per month on a $1.4 million home compared to earlier this year. Inventory remains higher than last fall, with 4,288 active listings—up 18% year-over-year and the most late-season selection since 2019. However, supply is already tightening again, down 4% in the last two weeks, as sellers pull homes off the market heading into the holidays.
Even with a seasonal dip in demand (down 2%), lower rates are keeping the market active. The Expected Market Time has improved from 85 to 83 days, signaling a balanced but healthy pace. Well-priced homes continue to sell quickly, while overpriced listings are sitting longer and often negotiating price adjustments or offering rate buydowns to attract buyers. Overall, the market is stable, balanced, and quietly favoring those who act strategically as the year winds down.
This is a window of opportunity—lower mortgage rates, more available homes, and motivated sellers mean stronger negotiating power. Buyers who move now can secure favorable terms before competition increases in spring.
Inventory is beginning to tighten again, creating less competition for well-presented homes. With serious buyers still active, listing before the spring rush can give you a strategic edge—just be sure to price smartly and market effectively to stand out. Click to Calculate Your Mortgage Budget
Let us guide you home.
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!
