Orange County Real Estate Market Update – August 2026

A Market That Continues to Move Toward Balance

What is happening in the Orange County housing market right now? The latest numbers show a market that is becoming more balanced, with inventory holding relatively steady while buyer activity has started to increase.

According to the August 17, 2026 Orange County Housing Summary from Reports on Housing, there are currently 5,054 homes actively on the market. That's nearly unchanged from last year, when 5,011 homes were available.

However, inventory remains well below historical levels. The 2017–2019 pre-COVID average was 6,723 homes, about 33% higher than today's inventory.

Buyer Demand Is Picking Up

There are currently 1,535 pending sales in Orange County, an increase of 41 over the past two weeks.

While demand remains below last year's 1,652 pending sales and significantly below the pre-COVID average of 2,574, the recent increase is noteworthy. It represents the largest increase in buyer demand since the beginning of May.

Homes Are Selling a Little Faster

As demand has increased while inventory has remained relatively stable, the Expected Market Time has improved from 101 to 99 days.

For comparison, the market was at 91 days a year ago and averaged 79 days during 2017–2019.

This means buyers generally have more time to evaluate their options than they did during the extremely competitive pandemic market—but desirable, properly priced homes can still move quickly.

Distressed Sales Remain Extremely Rare

Only 9 distressed properties—4 foreclosures and 5 short sales—are currently available in Orange County.

Short sales and foreclosures represent just 0.2% of active listings, demonstrating that the vast majority of homeowners selling today continue to have significant equity.

Sellers Are Still Achieving Strong Results

Orange County recorded 1,930 closed residential resales in July 2026, nearly identical to July 2025's 1,934 sales.

The countywide sales-to-list-price ratio was 99.5%, showing that sellers who price and position their homes correctly continue to achieve strong results.

What Does This Mean for You?

The Orange County market isn't as fast-paced as it was during the pandemic, but it certainly isn't a stagnant market either.

Buyers: You have more time and choices than you did a few years ago.

Sellers: Proper pricing, preparation and marketing remain critical to attracting today's buyers and maximizing your sale.

And remember, Orange County is made up of many different real estate markets. Conditions can vary significantly from city to city, neighborhood to neighborhood and price range to price range.

If you're considering buying or selling, I'd be happy to provide a specific market analysis for your neighborhood and property rather than relying solely on countywide statistics.

Market data source: Reports on Housing, Orange County Housing Summary, August 17, 2026. Information is provided for general market insight and reflects conditions reported as of that date.

Excerpt taken from an article by Steven Thomas.