Orange County, CA Real Estate Market Report - June 2025

Orange County, CA Real Estate Market Report - June 2025

The Orange County real estate market in June 2025 is navigating a period of transition, showing signs of cooling from the intense buyer competition seen in previous years, while still maintaining its fundamental strength. Buyers are gaining slightly more leverage as inventory increases and sellers adjust expectations.

Key Highlights:

• Market Condition: While still largely considered a Seller's Market, Orange County is shifting towards a more balanced environment. Increased inventory and a rise in price reductions indicate a moderation from the "red-hot" conditions of recent years.

• Median Home Price: The median sold home price in Orange County in June 2025 hovered around $1,178,819 to $1,200,000. This represents a year-over-year increase, with some reports showing a gain of 5.7% to 9% compared to June 2024. However, the pace of home value growth has slowed significantly in 2025, with appreciation cooling to around 6.4% year-over-year.

• Inventory Levels: Active listing inventory has notably increased, reaching its highest levels since July 2020. Reports indicate active listings ranging from approximately 4,600 to nearly 8,000 homes in June 2025, representing a significant year-over-year increase (e.g., 40% higher than last year in some reports). This rise in supply is providing buyers with more options than previously available.

• Days on Market (DOM): The average days on market has seen an increase, suggesting that homes are taking longer to sell. While some reports indicate an average of 29-36 days, others show an "Expected Market Time" of 84-85 days to sell all current listings. This is a substantial increase compared to 51-54 days last year, reflecting a more deliberate pace for buyers and reduced intensity in bidding wars.

• Sales Activity & Price Reductions: Buyer demand (pending sales) has remained relatively stable, but the market is seeing a notable rise in price reductions. Approximately 24.6% of listings have seen price cuts, marking a six-year high. Additionally, over 50% of homes sold in June 2025 went for below their asking price, indicating that buyers are finding more opportunities for negotiation.

• Interest Rates: Mortgage rates remain a critical factor. The average 30-year fixed mortgage rate was around 6.77% in late June 2025. While still higher than historic lows, experts anticipate rates may stabilize around the mid-6% range by the end of 2025. Elevated rates continue to impact buyer affordability and overall demand.

• Regional Differences:

  • Coastal communities (e.g., Newport Beach, Laguna Beach, Dana Point) continue to experience strong buyer interest and command premium pricing due to their desirable lifestyle.

  • Inland cities (e.g., Santa Ana, Anaheim) are seeing a more balanced market with increased listings, offering buyers greater negotiation leverage.

  • The market pace can also vary significantly by price range, with luxury homes generally having much longer days on market.

• Outlook: The Orange County housing market is expected to remain active through the summer. Inventory is likely to continue its gradual increase, which should further help balance supply and demand. For sellers, competitive pricing and excellent property presentation are crucial. Buyers, on the other hand, have more time and options, and should be prepared to negotiate, especially on properties that have been on the market for a while. The market's future trajectory will largely depend on sustained economic factors and interest rate movements.