Orange County Housing Market Report: June 2025
Brought to you by Community Partners Realty, Inc., Your Local Orange County Real Estate Experts
The Orange County housing market isn’t crashing. Yet. But if you’ve been watching closely, something’s shifting. Inventory is creeping up. Sales are cooling. And those sky-high mortgage rates? Still squeezing the life out of buyer demand.
Let’s break down what’s really happening in the OC real estate market this month.
Median Home Prices in Orange County
Home prices are still holding strong… for now.
- Median sale price: $1.2 million (Redfin)
- Median home value: $1.18 million (Zillow)
- Year-over-year price change: +0.4% to +7.4%, depending on the data source
That’s essentially a price plateau. Sellers are still listing high, but buyers aren’t biting like they used to.
Home Sales Are Slowing
The big story this month? Fewer homes are actually selling.
- 1,857 homes sold in May (Redfin)
- That’s a 14.4% drop compared to May 2024
- Some OC cities have seen sales volume fall by 30–38%
Fewer closings means more listings sitting on the market. And that’s where things get interesting.
Inventory Is Climbing
- Active listings: ~4,725 homes
- Up 15% in just two weeks
- Average time on market: 34–56 days, depending on area
Buyers are on pause. Sellers are testing the market. And inventory is finally stacking up after years of low supply. This is the first real shift in leverage we’ve seen in a while.
Mortgage Rates: Still High, Still Hurting Demand
Rates are hovering above 7%, and that’s putting the brakes on a lot of would-be buyers.
Even with more homes to choose from, affordability is a serious problem:
- Only 12% of OC households can afford the median-priced home
- Wage growth hasn’t come close to keeping up with housing costs
- Renters trying to buy are getting squeezed out
Are We Heading Toward a Market Correction?
Let’s be honest. No one has a crystal ball, but the numbers tell a story:
- Prices flat
- Sales down
- Inventory rising
- Rates still painful
If sellers want to move their homes, price cuts may be next. And that’s where we could finally see a soft correction—or worse.
What This Means for Buyers and Sellers
Thinking of Buying in Orange County?
This is the beginning of a window. More inventory. Less competition. And sellers might finally be open to negotiation. Just make sure you’re pre-approved and ready to act.
Planning to Sell?
You’re still in a good spot—but not for long. If this trend continues, holding out could cost you. Price realistically, present your home well, and market aggressively.
Local Expertise from Community Partners Realty, Inc.
Whether you’re buying your first home, upgrading, or investing in Orange County, work with a team that lives and breathes the local market.
Community Partners Realty is the go-to OCREALTOR brokerage for a reason. We don’t just sell homes—we know the neighborhoods, the trends, and the people.
🧭 Need help navigating this shifting market?
Call Martin Bressem at 949-254-4721 Community Partners Realty, Inc.
Let’s talk strategy—before the market talks for you.
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