Is the Orange County Housing Market Crashing? Here Are 3 Key Signs to Watch

Veronica and Rosario have very different ideas of what “simple” means when it comes to recipes. For Veronica, “simple” can involve hours of prep—as long as she can watch her favorite shows while doing it. Rosario? He’s a three-ingredients-or-less kind of guy. No, really, his brain shuts down after three.

The recipe for an Orange County housing market crash or bubble works the same way. Sure, you can factor in jobs, inflation, affordability, mortgage rates, and days on market—but unless you’re an economist, your brain might glaze over. The simpler “recipe” for a falling market?

• Very low housing demand 
• Very high housing supply 
• A high number of distressed homes for sale

Let’s see where the Orange County real estate market stands in July 2025.

1. How Low Is Housing Demand in Orange County Right Now?

(OC real estate demand trends, July 2025)

Demand has been weak in 2025, similar to the sluggish levels of 2023 and 2024. With mortgage interest rates still high, most buyers in today’s market are moving because of life events—like job relocations—rather than choice.

In the past, low supply helped mask this weak demand, allowing homes to sell quickly. But as supply shifts, that balance is changing.

Bottom line: Low buyer demand in Orange County has been signaling that a slower market could be ahead.

2. How High Is Orange County Housing Inventory?

(OC housing inventory levels, July 2025)

Compared to July 2024, Orange County housing inventory is up more than 40%. That’s a big jump—but still well below the 2019 “normal” market levels. Inventory would need to climb another 40% just to match that, and to hit Great Recession levels, it would have to keep rising at this pace for years.

Bottom line: Today’s inventory levels are growing, but they’re still far from the point where they’d cause a housing bubble or market crash.

3. Where Are All the Distressed Listings?

(Orange County foreclosures and short sales, July 2025)

During the housing bust of the Great Recession, distressed listings (foreclosures and short sales) skyrocketed—jumping from a few hundred in May 2007 to almost 6,000 by May 2008. That was more than one-third of all listings.

Today? There are just 7 distressed listings in all of Orange County. Most local homeowners have significant equity, meaning they’re not being forced to sell under distress.

Bottom line: With so few distressed properties, there’s no sign of an Orange County housing crash on the horizon.

Final Thoughts: Real Estate Is Hyperlocal

The Orange County real estate market isn’t crashing—and the data shows we’re far from it. But real estate trends can vary drastically from city to city and even neighborhood to neighborhood.

If you’re thinking about buying or selling in 2025, a customized market analysis will give you the clearest picture of your opportunities.

📞 Contact The Veronica Encinas Team today to get a personalized breakdown of your local market and expert guidance for your next move.

Aliso Viejo Real Estate – July 2025 Market Update

If you live in Aliso Viejo or are thinking about making a move, here’s a quick look at what’s happening in the local housing market, and what it means for buyers and sellers heading into the second half of summer.

 

1. Sales Are Up — Highest June in 3 Years

June saw 40 homes sell in Aliso Viejo, marking the busiest June since 2022. That’s a strong signal that there’s still healthy demand in our market, especially for well-presented homes in desirable neighborhoods like Westridge.

2. Prices Have Pulled Back (Slightly)

While buyer activity picked up, prices adjusted a bit. The average price per square foot came in at $685, down from the spring peak of around $700. This isn’t a dramatic drop, but it reflects a cooling from the red-hot pace earlier in the year.

3. Fewer Bidding Wars, Closer to Asking Price

Homes are still selling — but fewer are going over asking. On average, properties sold for 99% of list price, which means buyers are negotiating more and sellers need to be strategic about how they price.

4. New Listings Slowed Down

One of the more surprising trends? New listings dropped 33% compared to this time last year. Even though total inventory ticked up, it’s mostly due to older listings sitting longer, not a flood of new properties hitting the market.

💡 What This Means for You

Buyers:
You’ve got a little more breathing room right now with less competition and more time to make thoughtful decisions. But keep in mind: well-priced, move-in-ready homes are still moving quickly.

Sellers:
Today’s buyers are more price-sensitive and less willing to compromise. That means presentation and pricing matter more than ever. A strong first impression, both online and in person, can make the difference between a fast sale and a listing that lingers.

If you’re thinking about selling this summer (or just want to know what your home is worth in today’s market), feel free to get in touch or check out our Homebot tool for an instant snapshot.

 Contact us today! 949-616-4440

Buy First or Sell First?

6 Strategies for Buying a New Home When You Already Own One

 

Buying your next home in Orange County when you already own a home can be dizzying. Whether you’re upsizing, downsizing, or relocating, it’s often one of the most complex real estate moves you’ll ever make. One of the first questions our clients ask is:

Should I sell my current home first or buy my next home first?

There’s no one-size-fits-all answer, but there are proven strategies. Below, we break down the four most common paths for buying and selling a home in Orange County, along with two lesser-known options that work well in the right circumstances.

1. Buy First, Then Sell (Non-Contingent Purchase)

Definition: Purchase your next home without making it contingent on selling your current home. Then sell your current home after you’ve moved.

✅ Advantages:

• You’re in a stronger negotiating position as a buyer. In Orange County, all things being equal, non-contingent offers typically beat contingent ones.
• You can time the sale of your current home for optimal market conditions.

⚠️ Disadvantages:

• You’ll need the cash to buy without selling.
• Not everyone has the assets or income to support this strategy.
• There’s a risk to carrying two homes and two payments at once.
  

2. Sell First, Then Buy (Non-Contingent Sale)

Definition: Sell your current home before buying your next one. This strategy often includes a short-term rent-back (typically up to two months).

✅ Advantages:

• Once your current home is closed, or at least in escrow with contingencies removed, you’re in a much stronger position to negotiate on the next home.
• You can maximize your sales price by avoiding the pressure to accept the first offer.

⚠️ Disadvantages:

• If your dream home isn’t available right away, you may need temporary housing or a short-term rental—aka the dreaded “double move.”

3. Sell Contingent on Finding a Replacement Property

Definition: List and sell your current home with a contingency clause stating the sale is dependent on you securing your next home.

✅ Advantages:

• You stay in control: you only move if you find the right home.
• It lets you test the market and get a clearer picture of your available equity.

⚠️ Disadvantages:

• Orange County buyers may hesitate to wait around for you to find your next home.
• Your buyer may not begin inspections until you’ve identified and secured your next property.
• Your offer on your next home won’t be as competitive as one from a buyer with closed escrow or removed contingencies.

4. Buy Contingent on Selling Your Current Home

Definition: Make an offer on your next home that is contingent on selling your current home—even though you haven’t yet found a buyer.

✅ Advantages:

• Offers peace of mind: you’ve found your next home before letting go of your current one.

⚠️ Disadvantages:

• Contingent offers are often seen as the weakest in competitive Orange County markets.
• Sellers may demand a higher price to accept your offer, or reject it entirely.
• Your options will be limited, especially if sellers need a fast or guaranteed close.

Two Less-Common (But Effective) Alternatives

5. Use a Bridge Loan or HELOC to Buy Before You Sell

Definition: Leverage a bridge loan or Home Equity Line of Credit (HELOC) to fund the down payment or full purchase of your next home, then pay it off after selling your current home.

✅ Advantages:

• You can make a non-contingent offer while still using the equity in your current home.
• It gives you the flexibility to sell on your own timeline.

⚠️ Disadvantages:

• Bridge loans have additional fees and higher interest rates.
• They’re designed to be temporary and refinanced, so the math has to make sense.
• You still carry the risk of owning two homes, even if only for a short time.

6. Rent Out Your Current Home to Help Qualify for the Next One

Definition: Turn your current home into a rental and use projected rental income to help qualify for your next mortgage.

✅ Advantages:

• Some lenders allow you to factor in potential rent when determining your borrowing power, especially helpful if your current mortgage has a low interest rate.
• It can be a great option if the rental market is hot but the sales market is slower.

⚠️ Disadvantages:

• You become a landlord, even if only temporarily.
• Not all lenders will count projected rent unless you have a signed lease.
• You’ll still need sufficient cash or financing for your next home’s down payment without tapping the equity in your current home.

Which Strategy Is Right for You?

The best approach depends on your finances, goals, and market timing. We help clients weigh the pros and cons of each strategy, connect with lenders who offer specialty financing, and create a tailored plan that makes moving less stressful.

📞 Ready to talk through your options? Contact us for a pressure-free consultation.

 

Summer 2025 is the Right Time to Buy a Home in Orange County

Here are the questions buyers have been asking us for the last 10+ years(!) that we can now answer the way they were always hoping we would:

1. When are there going to be more homes available in Orange County?

Inventory is up over 51% in June 2025 over June 2024. More inventory means more variety, better chances of finding the right fit, and less pressure to make hasty decisions.

2. Are sellers’ negotiable on their price?

Average days on market in Orange County were over 40 days in June 2025, a number that we haven’t seen in an Orange County summer in years. Most sellers will reduce their prices after 2-4 weeks on the market, giving buyers a little more ability to compare and strategize.

3. Is every home going to have a bidding war won by all-cash?

Homes in Orange County sold on average below list price for the first time in a summer month in years. With fewer bidding wars and a drop in all-cash purchases, buyers using traditional financing have found themselves in a stronger position. Also, more contingent offers are being accepted, and sellers are more open to concessions such as rate buydowns and repair credits.

4. When are rates coming down?

While mortgage rates remain elevated compared to pre-2022 levels, they have settled into a more predictable mid-6% range. This stability offers clarity for buyers planning long-term. Fannie Mae suggests that rates could edge lower by year-end, but locking in now offers certainty, especially as prices continue to climb a bit.

5. Do you think prices will come down in the future?

Orange County home prices have increased by just over 5% year over year. Fannie Mae’s home price expectation survey polled over 100 housing experts and price growth looks to be moderate at around 3% nationally in each of the next couple of years. Buyers can expect equity growth without facing a runaway market.

Our question to you: Why wait?

Buying in summer 2025 presents a smart opportunity for those ready to make a move. With inventory rising, sellers adjusting expectations, and rates showing signs of stabilization, buyers have more leverage and options than in previous years. The key is getting preapproved, monitoring listings for price reductions, and acting decisively when the right property appears.

Celebrate the 4th in South Orange County: Local Highlights

Aliso Viejo

We love the low-altitude fireworks that add to the community feeling at this celebration. 

July 4, 2025 • 6 – 9:30 PM @ Grand Park / Town Center
– Family-friendly festival with live band (Young Guns, 7–9 PM), interactive booths, caricatures, face‑painting, obstacle courses and tattoos.
– Fireworks at ~9 PM over the amphitheater. Early arrival is recommended. Blankets/low chairs only.

Laguna Niguel

Run, eat, swim, dance, and be amazed. Due to fire-risk, this will be the first year there will be a drone show.

July 4, 2025 • All‑day @ Crown Valley Community Park
– Morning pancake breakfast (7:30–10:30 AM) & 5K/10K run. Afternoon concerts (6–8 PM).
– Flyover by airshow team, Dawn Patrol.
– Drone show at ~9 PM over the lake.

Irvine

Another first, Irvine is celebrating at the Great Park this year, including a separate ticketed Pacific Symphony celebration.

July 4, 2025 • 4 -10 PM @ Great Park
– Community parade, balloon rides, carousel.
– Silent disco starting at 8pm.
– Grand finale fireworks AND drone show ~9 PM over the park.

Mission Viejo

A street faire, games, rides, fireworks, and more. A good old-fashioned celebration.

July 4, 2025 • Noon–9 PM @ Olympiad Drive (between Marguerite & Melinda)
– Street fair with rides, games, DJ sets & food trucks all day.
– Fireworks spectacular at 9 PM, plus free shuttle service.

Laguna Beach (Heisler Park)

Bringing Fireworks back at 9 PM launched from Monument Point, with trolley service starting ~9 AM to ease parking.

Laguna Hills

Community celebration starting at 4 PM + fireworks at 9 PM at Laguna Hills Community Center – carnival rides, food trucks, live bands.

Ladera Ranch

“Pro-stroll” event at Founder’s Park with runs, bake-off, carnival activities, food trucks, live entertainment, ending with fireworks at 9 PM.

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Other Top OC Celebrations Worth the Trip

Disneyland Resort (Anaheim)

A one-night-only, must-experience event that draws huge crowds.

“Disney’s Celebrate America! – A Fourth of July Concert in the Sky”
– Park open 8 AM–midnight; fireworks ~9:30 PM over Sleeping Beauty Castle, synced with patriotic music and special projections.

Knott’s Berry Farm (Buena Park)

July 4, 2025 • Park open 10 AM–11 PM; fireworks 9:30 PM
– Celebrate with rides, live music and a choreographed fireworks show.

Newport Beach

July 4, 2025 • 8AM – 10PM; fireworks 9PM
– Bike parade, BOAT parade, festivities on the Back Bay area.

 

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 Pro Tips

• Arrive early: Most events fill up fast, especially Disneyland, Laguna Beach, and Mission Viejo
• Plan parking ahead: Take advantage of shuttles (Mission Viejo) or trolleys (Laguna Beach).
• Bring essentials: Blankets, low chairs, water, sunscreen, picnic food.

 

Let us know how you’re celebrating this year!

Orange County Housing Market Update – May 2025

 

What Rising Inventory Means for Home Prices in Orange County Cities Like Aliso Viejo, Irvine, and Beyond

The national news may be talking about a housing shift, but here in Orange County, the real estate “weather” has its own microclimate.

Think of it this way: just because it’s raining in Florida doesn’t mean you need an umbrella in Laguna Niguel.

In May 2025, the Orange County housing market is experiencing some significant changes—particularly in inventory levels—but the impact on home prices varies widely from city to city.

 

Inventory Is Climbing—But What Does That Mean?

Nationwide, housing inventory is up roughly 30% year-over-year, but because we’ve been dealing with record-low inventory levels since the pandemic, most experts believe it’ll take another year for the national market to return to pre-COVID supply.

Orange County is a different story.

Here, inventory is up 64% compared to this time last year. At this pace, our local market may hit pre-COVID inventory levels sometime in 2025. With home sales down 5–6%, the gap between supply and demand is beginning to narrow—pushing us toward a more balanced market after years of favoring sellers.

But not every city is changing at the same pace.

 

Aliso Viejo Still Lagging in Inventory

In Aliso Viejo, housing inventory remains well below historic norms. Even with growth, it could still be a few years before we reach 2019 levels. Homes here—especially those priced under the county’s median list price of $1.5M—are still seeing healthy buyer demand.

 

Irvine’s Market Is Shifting Fast

By contrast, Irvine is experiencing one of the biggest inventory surges in the region. Listings are up 185% year-over-year. This once ultra-competitive market is on track to return to 2019 inventory levels by summer 2025.

 

Are Home Prices Falling in Orange County?

Despite the inventory spike, home prices remain relatively stable. Nationally, prices are up 1–2% over last year.

That trend holds true in Aliso Viejo, and even in fast-changing Irvine, prices have risen 2–3% year-over-year.

This suggests that rising inventory hasn’t yet tipped the market in favor of buyers—especially in more affordable areas where demand remains strong.

 

What to Expect in the Months Ahead

Here’s our Orange County housing market outlook for the rest of 2025:

• Prices are likely to remain steady as long as inventory stays at or below pre-COVID levels.
• Higher-priced markets—like Dana Point, Laguna Beach, and Newport Beach, where average prices range from $2M to $5M+—may see homes sitting longer on the market.
• Suburban cities with more attainable price points, such as Mission Viejo, Foothill Ranch, and Aliso Viejo, will likely continue to perform well due to strong buyer demand.
  

 

Final Thoughts: Real Estate Is Hyperlocal

If you’re a homeowner wondering whether now is the right time to sell, or a buyer trying to make sense of changing market conditions, the best next step is a customized market analysis. The trends in your neighborhood—or even your street—may look very different from the countywide data.

The Veronica Encinas Team specializes in helping Orange County buyers and sellers navigate local market shifts with confidence.

📞 Contact us today to get a personalized breakdown of your city’s market and what your next move should be.

 

 

Should You Get a Home Inspection Before Selling Your Home in Orange County?

 

Why is the “Address and Disclose” strategy may be a smarter way to prep your home for sale?

When you’re getting ready to sell your home in Orange County, one question often comes up:

Should I get a home inspection before putting my home on the market?

While a pre-sale home inspection may seem like a proactive move, it’s not always the best strategy—especially in today’s Orange County real estate market. Here’s why, and what we suggest doing instead.

 

What Is a Pre-Sale Home Inspection?

A pre-sale (or pre-listing) inspection is when a homeowner hires a home inspector before the property is listed. The idea is to uncover any issues early and handle them before a buyer gets involved.

But there’s a catch: Any inspection you order must be shared with buyers later. That can lead to unnecessary questions, especially if the buyer brings in their own inspector with different findings.

 

Why It Might Not Help Your Sale

Most buyers will still want their own inspection, even if you provide them with a report. If their inspection reveals new or conflicting issues, it can cause confusion, concern—or even impact the strength of their offer.

In many cases, you’re better off skipping the formal inspection and focusing instead on preparing your home strategically.

Our Preferred Approach: “Address and Disclose”

We’ve helped many homeowners throughout Orange County prepare their homes for sale using a simple but effective approach we call “Address and Disclose.”

 

Here’s what it looks like:

1. Address Small Issues That Affect Buyer Perception

Start by noting issues you already know about. Then, with guidance from your Realtor, decide which items are worth fixing.

For example: A slowly dripping kitchen faucet might seem minor, but if there’s a bucket catching water under the sink, it can create a poor impression about how well the home has been maintained.

Fixing these types of items is typically inexpensive and pays off by presenting a more cared-for home.

Once a repair is made, be transparent with buyers by noting the update in your disclosures.

“A well-prepared kitchen in Aliso Viejo—small fixes can make a big impact when selling in Orange County.”

2. Disclose, Don’t Stress, Over Bigger Issues You’re Not Addressing

Some issues may not be worth fixing—especially if time or cost is a factor. For example, if the seal on your sliding glass door is broken and the glass is foggy (but still functional), replacing it might take weeks.

Instead of delaying your moving plans, you can leave the door as-is and include a note in your disclosures so buyers know about it up front.

As always, check with your Realtor for guidance on how best to approach disclosure in your specific situation.

Final Tips for Sellers in Orange County

Whether you’re in North County or South County, the formula is the same:

• List the issues you already know about
• Fix the ones that could impact your sale
• Be transparent about anything you didn’t address
• Keep records if you use contractors—especially for major work

Your real estate agent can help you weigh what’s worth doing based on the market, your timeline, and your goals.

Thinking About Selling? We Can Help.

We help Orange County homeowners make smart decisions when preparing to sell—without overspending or overcomplicating the process.

Whether you’re selling in Aliso Viejo or Yorba Linda, we’ll help you create a plan that makes your home market-ready and attractive to today’s buyers.

Have questions? Let’s talk. We’re here to help.

Looking to buy a home in Orange County?

Don’t let these common mistakes hold you back! Whether you’re a first-time buyer or experienced, avoiding these pitfalls can save you time, stress, and money.

 

1. Not Consulting a Lender Early

Thinking of buying a home with a mortgage? Talk to a lender now-even if your purchase plans are a year away. Understanding your financial situation early helps set realistic expectations and prepares you to act fast when the perfect home hits the market.

• Some buyers learn they can afford more (or less) than they thought by consulting with a lender.
• Others discover they’re ready to buy sooner than expected. Don’t leave this critical step until the last minute!

2. Relying Solely on Online Listings

Browsing homes online is convenient, but in-person visits are essential. Walking around the neighborhood and exploring the home in person provides invaluable insights that photos and descriptions can’t.

• Notice details like smells, traffic noise, or neighborhood ambiance that aren’t captured online.
• Talk to neighbors for insider information on the community vibe.

Remember, nothing beats the real-life experience of seeing your potential home up close.

3. Trying to Time the Market

Real estate markets, like stock markets, are tricky to predict. Many buyers waited for prices to drop in 2022 when interest rates rose-but missed out when prices rebounded.

• Prices in Orange County continue to rise, even with steady rates.
• Focus on finding the right home for your needs, rather than trying to “time the market.”

Ready to Find Your Dream Home in Orange County?

Avoid these mistakes and make your home-buying process smooth and successful. Contact The Veronica Encinas Team today to kickstart your journey!