Orange County Housing Market Update: The "Lull Phase" Has Arrived

Orange County has entered a slower, more competitive summer market. Inventory is climbing, buyer demand is falling, and homes are taking longer to sell than at any point since the pandemic lockdown. Sellers who price accurately and present their homes well are still finding success — but the margin for error has narrowed considerably.

Here's why:

1. Supply is rising while demand is retreating. Active listings jumped 7% in the past two weeks to 5,020 homes — the largest two-week increase since January. At the same time, buyer demand (pending sales) fell 6% to 1,472, the lowest mid-July reading since local tracking began in 2004. Higher mortgage rates, which touched 6.55% this month, are the primary driver.

2. Homes are sitting longer — a lot longer. The Expected Market Time (how long it would take to sell all current listings at today's pace) rose to 102 days, its highest level since the April 2020 COVID lockdown. Nearly two-thirds of all active listings (64%) have been on the market 30+ days, and 41% have passed the two-month mark.

3. The luxury segment is cooling fastest. Homes priced above $2.5 million now average 193 days on market, and those above $6 million are averaging 341 days — over 11 months. Luxury demand fell 9% in just two weeks, even as luxury inventory grew.

4. More sellers are giving up than ever before. From January through June, 3,669 Orange County sellers pulled their listings off the market without selling — up 11% year-over-year and more than double the 2024 total. That's equal to 73% of all homes currently for sale.

The takeaway for sellers: Pricing at true fair market value — grounded in recent closed and pending sales — remains the single biggest factor separating homes that sell quickly from those that linger. In June, half of all closed sales went pending within their first two weeks on market, proof that well-priced, move-in-ready homes are still moving, even in a cooler market.

Source: Reports on Housing, "The Lull Phase," July 20, 2026