The Orange County housing market showed some interesting shifts in August. While sellers still have leverage, the numbers point to a market that’s gradually balancing out. Here’s what stood out:

Sellers Still Have the Upper Hand, But Just Barely

The sales price to list price ratio came in at 99%, which means the average buyer negotiated about a 1% discount last month. That’s a little more wiggle room than we’ve seen in the recent past, but it’s still a sign that sellers hold some bargaining power.

Fewer Homes Changing Hands

Sales were down about 4% year over year. That may not sound dramatic, but it adds to the bigger story: buyers are being selective, and not every listing is moving as quickly as it would have in past years.

Homes Sitting Longer

The average days on market climbed to 51. That’s longer than what we're used to in Orange County, but it’s still within the range of a seller’s market. The trend line, though, is worth noting, it’s slowly heading toward a more balanced market.

Prices Holding Flat

The average sales price per square foot was flat compared to 2024. With inflation in the mix, buyers are effectively paying relatively less today than a year ago. For sellers, it’s another reason presentation and pricing strategy matter more than ever.

Inventory Tightens Again

After climbing earlier this summer, inventory began decreasing in August as fewer new listings hit the market. That’s keeping choices limited for buyers and helping stabilize prices.

Mortgage Rates Drop, Buyers Stir

Perhaps the biggest news: mortgage rates dropped to their lowest level this year, 6.26%. Loan applications jumped as a result, which could be an early sign of more demand this fall. If rates continue to ease, expect:

• Sales to pick up
• Days on market to shorten
• Prices to potentially start inching upward again

What This Means for You

• If you’re a seller: The market is still in your favor, but buyers are cautious. A sharp presentation and smart pricing strategy are key.
• If you’re a buyer: Lower rates give you more breathing room, but inventory is shrinking again. Acting before the competition ramps up could work to your advantage.

If you or anyone you know is thinking about moving in the next year, reach out to us today. We’d love to help!