Orange County Real Estate Market Report: August 2025

Orange County Real Estate Market Report: August 2025
Executive Summary
The Orange County real estate market in August 2025 showed signs of a continuing shift toward a more balanced environment. While prices experienced a slight dip on a month-over-month basis, likely due to seasonal trends, the market remains strong with a significant portion of inventory priced above $1 million. Buyers are gaining some leverage, with a higher percentage of homes selling below the asking price and an increase in the median days on market. However, well-priced, move-in-ready homes continue to sell quickly and often above the list price.

Key Market Indicators
Median Sales Price: The median home price for Orange County in August 2025 saw a month-over-month decrease, sliding from a high of around $1.23 million to approximately $1.175 million. This represents a softening of prices, but it is important to note that many coastal and luxury markets, such as Southeast Huntington Beach, still saw year-over-year appreciation. The median sale price per square foot was approximately $677.

Sales Volume: The number of homes sold in Orange County remains steady but with a slight decline compared to the previous year. As of July 2025, there were 1,975 homes sold, a decrease of 4.1% year-over-year. This points to muted, but not absent, buyer demand. The current demand is reflected in about 1,604 pending sales.

Days on Market (DOM): The median days on market has increased, giving buyers more time to make a decision. In July 2025, the median DOM was 53 days, which is up from 31 days the previous year. For homes priced over $1.5 million, the average time on the market can extend to 100 days or more. This indicates a slower pace of sales overall, but a significant portion of homes (around 26%) still sell quickly, in as little as eight days.

Inventory: Orange County's inventory is gradually building, with a total of around 5,071 homes for sale. This figure is up approximately 48% from the previous year, yet it remains significantly below pre-2008 crash levels. The slight increase in inventory is providing buyers with more options and contributing to the normalizing of the market.

Sale-to-List Price Ratio: The market is showing a clear split in performance. Approximately 61% of homes sold in July 2025 closed below their original list price, with a median price cut of $32,000. Conversely, nearly 26% of homes sold above the asking price, with a median premium of $30,000. This highlights that a property's condition and correct pricing are critical factors for a quick sale.

Market Insights & Outlook
The market's trajectory is influenced by several factors:

Interest Rates: Recent mortgage rate fluctuations are a wild card. A dip in rates could quickly reignite buyer demand, while a sustained level could help maintain the current more-balanced pace.

Buyer and Seller Strategies: With the market becoming more nuanced, a strategic approach is essential for both buyers and sellers. For buyers, it’s a good time to get pre-approved and be ready to act on well-priced homes. For sellers, proper pricing and excellent presentation are key to attracting serious offers and avoiding long days on the market.

Seasonal Trends: The market is following a typical seasonal rhythm, with a slight dip in activity and prices as summer ends. A rebound in demand is anticipated for the fall.

Overall, the Orange County real estate market is transitioning. It is neither a clear-cut seller's market nor a buyer's market, but rather a strategic one where careful planning and preparation are the keys to success for all parties involved.