March 2025 Orange County Housing Market Update
The Orange County housing market is experiencing a shift in momentum as inventory levels rise, demand remains steady, and market time extends compared to previous years.
More Homes for Sale, but a Slower Market
The active listing inventory has grown 38% compared to last year, reaching 3,183 homes—the highest level for this time of year since 2020.
Despite a 5% increase in demand over the past two weeks, with 1,569 pending sales, this is still 34% lower than the pre-pandemic average (2017–2019).
The Median Days on Market (how long it takes to sell a home) has increased to 35 days.
What’s Driving This Shift?
Higher mortgage rates have slowed buyer activity. Although rates have dropped from 7.25% in January to 6.74%, they remain well above the historic lows seen in 2020-2021.
More sellers are listing their homes. While many homeowners remain reluctant to move due to their locked-in low rates, there are more homes hitting the market right now than the beginning of the last few years.
Affordability challenges persist. Even with the recent rate dip, home payments remain significantly higher than just a few years ago, limiting demand.
