Is Now a Good Time to Buy a Home in Orange County?

It is the question everyone is asking, and the honest answer is: it depends on your situation. But here is what the current data tells us.

More Inventory, Less Competition

Active listings in Orange County just hit 4,475, up 4 percent in the past two weeks and heading higher through the summer. That is more choices for you and less competition than you would have seen in 2022 or 2023. Buyer demand has softened slightly and appears to have peaked for the season. That means you have more negotiating room than buyers did a year ago.

The Affordability Reality

Let us be straight with you: affordability is the toughest it has been in decades. The monthly payment for the median priced OC home now represents 71 percent of the median household income. That is higher than the peak before the 2008 crash. Rates sitting at 6.51 percent are a big part of that equation.

But here is the thing: waiting for rates to drop has a risk most people do not talk about. If rates fall to 6 percent, the payment drops to 67 percent of income. At 5.5 percent, it drops to 63 percent. That kind of improvement will bring a wave of buyers back to the market, and with them, more competition and higher prices. Buying before that happens could give you a real advantage.

The Detached vs Condo Difference

If you are buying a detached home, the market is moving faster: 76 days to sell on average. Condos and townhomes are sitting at 87 days. That gives condo buyers more leverage right now.

The Bottom Line for Buyers

More inventory. Softer demand. Sellers still getting full price but more willing to negotiate on terms. If your finances are ready, this window is worth a serious look, especially before rates drop and the competition comes back.

Let us talk about your situation. I work with a lot of first time buyers through the Schools First Federal Credit Union Home360 program, and I would love to walk you through your options.