Orange County Housing Report:

AI PRICING INACCURACIES

AI IS NOT AN ACCURATE GAUGE FOR DETERMINING A HOME'S PRICE AND

SHOULD ONLY BE USED AS A STARTING POINT

IN A CONVERSATION WITH A REAL ESTATE PROFESSIONAL.

The active listing inventory increased by 8 homes over the past two weeks, nearly unchanged, to 5,054. It appears as if the inventory has reached a plateau, yet not quite peaked. It has increased from 5,020 to 5,054 over the past four weeks, up only 34 homes. It is the last hurrah of summer as housing is about to transition to the Autumn Market, which officially begins in September. That is when the inventory slowly falls from week to week. With both the Spring and Summer Markets in the rearview mirror, fewer homes are placed on the market, and many unsuccessful sellers throw in the proverbial towel. Last year, the inventory was at 5,011 homes, with 43 fewer homes (-1%). The 3-year average before COVID (2017 through 2019) was 6,723, an additional 1,669 homes, or 33% more.

Homeowners continue to “hunker down” in their homes, unwilling to move because of their current, underlying, locked-in, low fixed-rate mortgage. This trend has been easing from the lows established in 2023. Through July, 18,948 homes were placed on the market in Orange County, 6,899 fewer than the 3-year average before COVID (2017-2019), 27% less. In 2025, 19,520 homes entered the market (3% more), compared with 17,052 in 2024 (10% fewer) and 14,616 in 2023 (23% fewer). Slightly fewer homes have been coming to market this year than last.

Excerpt from Stephen Thomas OC Housing