As of July 2025, Orange County’s real estate market has entered a slower phase. The Expected Market Time is now 96 days. For property owners and landlords, this shift means it’s time to rethink your leasing, selling, or investment strategy.
Inventory Is Up. Demand Isn’t.
Today’s market favors renters more than buyers. Inventory has surged to 5,050 homes—up 50% from 2024 and 111% higher than 2023. Yet buyer demand remains flat, with pending sales just 1% below last year.
That means more properties are sitting on the market, often without interest or offers.
- 35% of listings have been active for over 60 days
- Entry-level to luxury homes are experiencing longer vacancy periods
Days on Market by Price Range:
- Under $750K: 32% on the market 60+ days
- $750K–$1.5M: 27%–28% sitting
- $1.5M–$2M: About 33% unsold
- $2M–$4M: 35%–50% have yet to move
- Over $4M: Up to 63% remain available
For landlords and real estate investors, this trend signals the need for professional leasing strategies and accurate pricing.
🔗 Explore our full-service Orange County property management solutions to reduce vacancy time and stabilize your rental income.
Sellers Are Backing Off
Many owners are pausing sales. In June, 850 homes were pulled off the market—the highest monthly cancellation rate since 2019.
So far in 2025:
- 3,885 listings have been canceled or withdrawn
- That’s 17% of the total active inventory—double compared to 2024
As fall approaches and schools resume, expect even more sellers to delay until Spring 2026.
🔗 Not sure whether to sell or lease your home? Read our guide to navigating the Orange County rental market.
Pricing Strategy Is Everything
Today’s market doesn’t reward wishful pricing. Homes that are even slightly overpriced are sitting, reducing, or being pulled.
Key Tip for Property Owners:
- Price to Fair Market Value
- Don’t rely on “room to negotiate” tactics
Leasing your property? The same rule applies—price competitively or risk extended vacancies.
🔗 Get a free rental property analysis to see what your home should truly rent for in today’s market.
Buyer Psychology Has Shifted
Buyers aren’t desperate. They’re selective and waiting for value.
- Prices aren’t crashing
- Discounts are limited
- Fair market value wins
If you’re leasing or selling, it’s important to align with real-time market trends, not past highs.
🔗 Learn how our premier property management in Orange County keeps you ahead of changing buyer and renter behavior.
Orange County Inventory Trends
Active listings rose 5% in the last two weeks, the highest since 2019. But historically, inventory peaks between July and August before declining sharply through the holidays.
- 2024 inventory: 3,371 homes
- 2025 inventory: 5,050 homes
- Pre-COVID average (2017–2019): 6,776 homes
Fewer homes are hitting the market compared to the pre-pandemic years due to locked-in low mortgage rates. That means fewer move-ups, more rentals.
🔗 Stay up to date with our Orange County housing market report for the latest trends in supply, demand, and mortgage impact.
Demand: Stagnant with Signs of Weakness
Pending sales (demand) rose only 1% in two weeks—up to 1,584. Historically, July and August see declines, and with mortgage rates hovering near 7%, further slowdown is likely.
- Pre-COVID average demand: 2,578
- Current: 1,584
- That’s 63% lower than past averages
Unless mortgage rates dip under 6.5%, demand will stay soft.
What It Means for Property Managers
Expected Market Time is rising: It now takes 96 days, on average, to sell. That’s the slowest July since 2011.
- Condo/townhome market time: 94 days
- Detached home market time: 97 days
- Last year: 66–71 days
Landlords and investors must factor this lag into pricing, lease-up timing, and cash flow projections.
🔗 Let True Property Management streamline your rental operations while you plan your long-term investment strategy.
Luxury Rentals and Sales: Sluggish but Stable
Luxury inventory (homes $2.5M+) held steady at 1,233 listings. Demand increased slightly to 166 pending sales.
- Market time: 223 days overall
- $2.5M–$4M: 161 days
- $4M–$6M: 320 days
- $6M+: 373 days
If you manage high-end properties, plan for longer marketing cycles and a premium tenant experience.
🔗 See how True Property Management supports luxury property owners with white-glove leasing, pricing, and oversight.
Bottom Line
The Orange County market has shifted. Inventory is growing, but demand is not. For property owners and landlords, strategy and price accuracy are essential. For renters and buyers, the edge goes to those who act smartly and quickly.
🔗 Contact True Property Management to take control of your property, minimize vacancy, and maximize performance—whether you’re renting, selling, or holding for long-term growth.
Kurt Galitski- Principal, Broker
(949) 688 7705 | DRE #: 01348644