Orange County CA, Housing Market

As the 2026 housing market settles into focus, the latest Orange County data shows a market that is gaining momentum, supported by lower mortgage rates and rising buyer activity. Here’s a quick, visual breakdown of what’s happening now:

📊 Inventory: Rising, But Still Constrained

Active inventory now stands at 3,179 homes, up modestly from last year but far below pre-pandemic norms. While more homes are coming on the market, many owners remain “locked in” to low mortgage rates, keeping supply tight.

What this means:Inventory is no longer surging like it did in 2024–2025, which helps stabilize prices and supports sellers.

📈 Buyer Demand: Surging Quickly

Pending sales jumped 38% in just two weeks, rising from 914 to 1,264. This spike is typical for winter—but this year it’s amplified by mortgage rates that are nearly 1% lower than last year, dramatically improving affordability.

What this means:More buyers are re-entering the market, and competition is picking up.

⏱️ Market Speed: Homes Are Selling Faster

As demand rises faster than supply, the Expected Market Time dropped sharply from 101 days to 75 days, one of the fastest January improvements since 2019.

What this means:Well-priced homes are moving faster, and negotiation leverage is beginning to shift.

💎 Luxury Market: Noticeable Improvement

Luxury homes (above $2.5M) are seeing stronger demand with only modest inventory growth. Market times have dropped significantly across all luxury price tiers, signaling renewed confidence at the high end.

Bottom Line

Early 2026 is shaping up as a stronger, more balanced market in Orange County. Lower rates are driving demand, inventory remains controlled, and opportunities are emerging for buyers and sellers who act strategically.

If you’d like to see how these trends apply to your neighborhood or price range, I’m always happy to help.