January data for Orange County paints a picture of a market that’s cooling slightly, but in a measured way. Familiar seasonal patterns in January combined with a market that’s slowly becoming more balanced.

Prices Are Holding Firm

Homes sold at 99% of list price, exactly in line with both last month and last year. That kind of consistency tells us pricing remains rational. Sellers aren’t wildly overshooting, and buyers aren’t forcing deep discounts either.

Price per square foot came in at $771, up 2% from December and 2% year over year. That’s modest growth about in line with inflation.

Fewer Sales, but for Familiar Reasons

Closed sales were down 27% from December, which is very typical for the December-to-January transition. Holiday hangovers are real, even in real estate.

Sales were also down about 5% compared to January last year, and there’s a reasonable explanation here too: January 2026 had one fewer working day in California than January 2025. 

Homes Are Taking Longer to Sell

The average days on market rose to 60 days, up 11% from last month and about 17.5% from a year ago. This is a significant difference.

Sixty days still puts us in what we’d call neutral territory, but we’re clearly edging toward conditions that favor buyers, especially for homes that aren’t priced or presented well. Buyers are taking more time, weighing options, and expecting homes to justify their price.

Rates Are Helping

Mortgage rates around 6.1% remain near the lowest levels we’ve seen since 2022. While that’s not “cheap money” by historic standards, it’s enough to keep buyers engaged.

What This Means Going Forward

January didn’t bring fireworks, and that’s actually good news. Prices are steady, demand is selective but present, and buyers have just enough leverage to be careful without stalling the market.

For sellers, this is a reminder that pricing and preparation matter more than ever. For buyers, patience and negotiation are becoming more effective tools again.

As always, Orange County consists of many micro-markets layered together. The headline numbers set the stage, but the real story is still neighborhood by neighborhood, price range by price range. To get answers on how and why prices and sales in your neighborhood are changing, reach out to us today.