The Orange County housing market is shaking off the holiday slowdown and gaining momentum as we head into 2025. While January is typically one of the slowest months for real estate sales, inventory levels have started to climb back to pre-COVID levels, and buyer demand is on the rise. One key trend this month? A notable increase in cash buyers—making up 31.2% of closed sales—suggesting that investors and well-funded buyers are taking advantage of current market conditions.
Mortgage rates remain a hot topic, still hovering above 7%, which continues to impact affordability and pricing strategies. In January, 57% of homes sold below the original list price, showing that sellers are adjusting to market realities. Meanwhile, 30% of properties sold above asking, a slight dip from December, as buyers navigate fluctuating interest rates and economic uncertainty. If rates drop below 7% in the coming months, we could see a significant boost in home sales and overall market activity.
Despite seasonal trends, more homes came on the market in January than in November and December, signaling a shift toward a more balanced market. The number of homes pulled off the market dropped by 22%, reflecting a renewed sense of confidence among sellers. While we’re not back to the fast-paced pre-COVID market, early indicators show a more active year ahead, dependent on inflation, job data, and interest rate trends.
For buyers, this means opportunities to negotiate favorable deals, while sellers must price strategically to attract serious buyers. Whether you're looking to buy, sell, or invest, staying informed is crucial. Want the full breakdown of Orange County’s real estate market? Get the latest Reports on Housing insights today! 📊🏡
