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Orange County Market Report - 9/17/2025

  • Vy Tran
  • Oct 8
  • 2 min read

The Orange County housing market is shifting this fall. With mortgage rates dipping below 6.5% for the first time in nearly a year, both demand and buyer activity are picking up. Meanwhile, inventory is trending downward, creating a competitive environment for sellers.


Active Listings Continue to Decline

  • Current active listings: 4,758 homes — down 111 in just the past two weeks.

  • That’s 22% higher than last year (3,695 homes) but still far below the pre-COVID 3-year average of 6,520 homes.

  • Homeowners remain reluctant to sell due to low locked-in mortgage rates, though 2025 has seen more new listings compared to the last two years.



Demand Picks Up as Rates Ease

  • Pending sales (demand) rose 2% in the past two weeks to 1,591 homes.

  • That’s 13% higher than last year (1,413 pending) but still 33% below the pre-COVID 3-year average of 2,363.

  • Lower mortgage rates (6.27% as of Sept. 11) are improving affordability and fueling demand.



Expected Market Time Shortens

  • Current expected market time: 90 days, down from 94 just two weeks ago.

  • That’s slower than last year (78 days) but close to the pre-COVID average (84 days).

  • With inventory falling and demand rising, market time could shrink further into fall.



Mortgage Rate Snapshot

  • Today’s rate: 6.27% → $4,936/month payment on a $1M home with 20% down.

  • Last year: 6.15% → $4,874/month (only $62 less).

  • In 2023: 7.24% → $5,452/month — a $516 higher payment than today.



The Luxury Market ($2.5M+)

  • Inventory: 1,156 homes (down 3% from two weeks ago).

  • Demand: 161 pending sales, up 12%.

  • Market time: 215 days, improving from 248 days earlier.

  • Homes $2.5M–$4M: 163 days; 

  • Homes $4M–$6M: 224 days; 

  • Homes $6M+: 447 days.



Market Summary (as of Sept. 15, 2025)

  • Inventory: 4,758 homes, down 2% in two weeks.

  • Demand: 1,591 pending sales, up 2%.

  • Market Time: 90 days, lowest since June.

  • Closed Sales (Aug): 1,875, nearly identical to Aug. 2024.

  • Distressed Homes: Only 9 on the market (0.2% of listings).



Takeaway for Buyers & Sellers

The fall market is more competitive than expected:

  • Buyers are benefitting from lower rates, but face rising competition.

  • Sellers see stronger activity, especially in the luxury segment, but need smart pricing and preparation to stand out.


If rates stay below 6.5% for a prolonged period, Orange County could see an extended boost in demand into the holiday season.



Work With Vy Tran

As a top-producing Realtor® with First Team Real Estate, I specialize in Orange Hills, Villa Park, and Huntington Beach; helping clients in the $1M–$3M market buy and sell with confidence.

Whether you’re planning to list your home or explore new opportunities, I’d love to provide a tailored market update.

👉 Call me at (714) 909-8808 or email vytran@firstteam.com to get started today.


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Vy Tran

First Team Real Estate

(714) 909-8808

Click Here for Vy Zillow Profile


Disclaimer: Data from Reports On Housing. Reliable but not guaranteed; not financial or legal advice.

 
 
 

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