Fewer Sales, More Homes, but Prices Keep Rising

As October cooled, so did the Orange County housing market, with fewer homes selling, more homes available for sale, and longer marketing times. While a cooling trend is not particularly unusual this time of year, historically slowing sales are, especially paired with home prices that are holding up despite the slowdown.

Home Sales Take a Steep Dive

October saw just 1,469 homes sold in Orange County, a 14% decline from September and a whopping 22% decline from October of last year.

It's normal for home sales to slow as we head into fall. The spring and early summer tend to be the busiest times for real estate, with activity gradually tapering off as we approach the holidays.

However, October's decline is more dramatic than the usual seasonal slowdown. And, as we reported last month, sales were already at almost 20-year lows. 

It is likely that buyers are becoming increasingly selective and/or choosing to sit on the sidelines this fall.

Inventory Is Rising, Even as Fewer Homes Come on the Market

There were 5,693 homes for sale in Orange County in October, up 2% from September and more than 14% from October 2025.

This increase in inventory isn't being driven by a surge of new listings. Only 1,701 new homes came on the market in October, a 20% decrease from last year.

So how can inventory be increasing when fewer sellers are putting their homes up for sale? Likely, with fewer buyers purchasing homes, unsold listings are accumulating. Which means…

Homes Are Taking Longer to Sell

The average Orange County home took 52 days to sell in October, compared with 51 days in September and 50 days last October.

That's relatively flat, but it is increasing, which is consistent with a market in which buyers are taking their time and sellers are facing more competition. Usually, these numbers would lead to prices going down, but …

Despite the Slowdown, Orange County Home Prices Continue to Rise

Despite fewer sales, rising inventory, and longer marketing times, Orange County home prices are still higher than they were a year ago.

The average sales price per square foot was $776 in October, unchanged from September but 3.6% higher than October 2025. Price per square foot is generally the most useful pricing measure, but we checked median and average prices just in case, and those were also up.

How can prices remain elevated when sales are falling?

While there are fewer home buyers in the market, sellers may not feel under pressure to sell at substantially reduced prices. Homeowners who don't need to move may simply choose to wait rather than accept a lower offer.

And although inventory has increased, the supply of available homes remains relatively limited compared with the levels historically associated with a strong buyer's market.

The result is a market where fewer transactions are taking place, but prices haven't followed sales downward.

What Does This Mean for Orange County Buyers and Sellers?

For buyers, October's numbers are encouraging. More homes are available, properties are generally taking longer to sell, and there's potentially more room to negotiate than there was during the busier spring market.

For sellers, the message is fairly straightforward: pricing and presentation matter more than ever. With fewer active buyers and more competing listings, sellers can't necessarily count on the market to overcome an overly ambitious asking price.

The good news for BOTH buyers and sellers is that home values remain relatively strong. 

As we head into the final two months of 2026, the big question will be whether Orange County's slower sales activity will eventually put downward pressure on home prices, or whether prices will continue to defy expectations.

For now, the Orange County real estate market is slowing down, but home values are proving surprisingly resilient.

The Veronica Encinas Team | Coldwell Banker Realty

Thinking about buying or selling a home in Orange County? Contact the Veronica Encinas Team for help with your next move.