As of early November 2025, the Orange County real estate market is defined by increasing inventory, softening prices, and more leverage for buyers compared to recent years. While prices remain stable overall, they have leveled off, and some areas are seeing minor dips. This marks a shift from the bidding wars of 2022ā2023.
Key market indicators:
Median prices: The median home price in Orange County in October 2025 was approximately $1.1 million, representing modest year-over-year growth of about 2ā3%. Some estimates show the median price around $1.2 million in November, similar to the previous month but up 4% year-over-year. However, other reports showed a median listing price of $1.36 million in October, with a slight downward trend in recent months. This indicates a complex and varying price landscape.
Buyer sentiment: Buyers are more cautious and selective, with many homes taking longer to sell. Homes are averaging 91 days on the market, the longest since 2014. Over 60% of properties are selling below their initial list price, shifting negotiation power toward buyers.
Inventory: The housing inventory has increased compared to the last few years, but it remains historically low, contributing to price stability. Increased inventory is causing sellers to moderate their pricing expectations.
Interest rates: Though still high compared to historical lows, mortgage rates have declined slightly in 2025, making payments more manageable and potentially drawing more buyers into the market. Some experts predict that if rates drop further, competition could increase.
Sales volume: Home sales have seen a significant downturn compared to pre-pandemic levels. A March 2025 report noted Orange County sales dropped by 31% over the past three years. However, there was a modest increase of 6.4% in 2024 compared to 2023.
Luxury market: The high-end market, particularly in areas like Newport Beach and Laguna Beach, remains robust, fueled by a high percentage of cash buyers.
Submarket and investor trends:
Local variation: Market performance varies significantly across Orange County. While the overall market cools, certain cities, like Irvine and parts of Costa Mesa and Huntington Beach, continue to see strong demand and competitive conditions, especially for well-priced homes.
Investment opportunities: Increased inventory and longer market times in some segments offer opportunities for strategic investors. Multi-family units and properties in areas with strong rental demand, such as Costa Mesa and Santa Ana, are seen as attractive investment options.
In summary, the Orange County real estate market is transitioning from a highly aggressive seller's market to a more balanced environment. Prices have stabilized but still show modest long-term growth, while increased inventory and high interest rates have given buyers more negotiating power. Future developments will depend heavily on interest rate trends and broader economic conditions.