The "dog days of summer" have arrived in Orange County, but in real estate, prices remain an oasis.

Every year, as spring buying season winds down, sellers continue to put their homes on the market while buyer demand begins to cool. The result is a market that typically makes sellers sweat a little. Inventory rises, homes take longer to sell, sellers become a bit more negotiable, and prices soften slightly.

This July, almost everything followed that script, except for prices.

Sales declined, inventory and days-on-market rose, both as expected

The number of homes sold declined, falling about 11% from June, which is as expected this time of year. Year-over-year, sales were down 8%.

Partly as a result of lower sales, inventory increased by roughly 10% from last month and 3% from July 2025.

Homes also stayed on the market a little longer. Average days on market increased by a few days from both June and last July. 

So far, this all sounds exactly like a typical July. Except prices refused to cooperate.

Prices were up from June and last year

The average price per square foot was 2.5% higher than it was one year ago, and was flat from June. 

Why would prices stay up with other statistics pointing towards a slowdown?

1. Supply remained limited. Orange County still isn't dealing with an oversupply of homes. While inventory has increased, it remains relatively tight by historical standards.
2. Sellers gave buyers what they wanted. Well-priced, well-presented homes continue to attract buyers, especially in desirable neighborhoods where demand remains strong. 

The housing market is behaving much like we'd expect during the dog days of summer. Buyers have a little more negotiating power, homes are taking a bit longer to sell, and activity has cooled from the spring rush.

But unlike a typical July, prices have continued to hold their ground.

As we head toward the fall market, it will be interesting to see whether prices finally begin to follow the other indicators, or if Orange County's limited housing supply continues to keep home values up.