Orange County Market Update: September 2025

September brought a fresh breeze of change to Orange County’s real estate scene, painting a nuanced picture for buyers, sellers, and investors alike. Let’s dive into the key trends that shaped the market last month—and what they might mean for you.

Mortgage Trends: Rates Hold Steady, Buyers Regroup

After a year of ups and downs, mortgage rates in September 2025 finally found some stability. The average 30-year fixed rate hovered around 6.7%, a modest dip from the summer’s highs. This steadiness gave buyers a chance to catch their breath and reconsider their options. Lenders reported a slight uptick in applications, suggesting renewed interest from first-time buyers and those looking to refinance.

However, affordability remains a challenge. With home prices still elevated compared to pre-pandemic levels, many buyers are exploring creative solutions—such as adjustable-rate mortgages or pooling resources with family—to secure their dream home.

Housing Trends: Inventory Rises, Prices Level Off

One of the biggest shifts in September was the increase in housing inventory. More homeowners, encouraged by recent price stability, listed their properties, giving buyers more choices than we’ve seen in months. This helped cool the rapid price growth of previous years. Median home prices in Orange County edged up just 1.2% year-over-year, signaling a market that’s moving toward balance rather than a frenzied seller’s market.

Homes spent a bit longer on the market, averaging 32 days before sale, compared to just 21 days last September. This slower pace allowed buyers more time to make decisions, negotiate, and feel confident in their purchases.

Economic Data: A Resilient Local Economy

Orange County’s broader economy provided a solid foundation for the housing market in September. Unemployment held steady at a low 3.4%, reflecting strong job growth in sectors like healthcare, technology, and tourism. Consumer confidence remained high, with many residents feeling optimistic about their financial future—an encouraging sign for continued real estate activity.

Inflation pressures eased slightly, helping to stabilize both household budgets and housing costs. While some uncertainty remains on the national front, Orange County’s diverse economy continues to support a healthy, if more measured, real estate market.

What Does This Mean for You?

• Buyers: More inventory and stable rates mean you have greater choice and negotiating power.
• Sellers: Pricing competitively and being patient could yield strong offers, especially for move-in ready homes.
• Investors: The shift toward balance may present new opportunities for long-term gains.

As always, staying informed and working with a trusted local expert is key to making the most of Orange County’s dynamic market. Here’s to smart moves and new beginnings this fall!