The Power of Pricing: Why Orange County Sellers Need to Get It Right From Day One

Orange County’s housing market continues to slow as mortgage rates remain above 7%, buyer demand weakens, and homes take longer to sell. According to the latest Orange County Housing Report, 45% of active listings have reduced their asking prices at least once. With competition increasing, pricing a home correctly from the start can make a significant difference in how quickly it sells—and how much a seller ultimately receives.

📊 Inventory Remains Elevated

Orange County’s active listing inventory increased by 24 homes over the past two weeks, reaching 4,948 homes, a 0.5% increase.

Inventory is now 13% higher than last year, when 4,288 homes were on the market. However, it remains 21% below the pre-COVID 2017–2019 average of 6,010 homes.

Through September, 27% fewer homes entered the market than the pre-COVID average. Many homeowners continue to hold onto their properties because of their existing low fixed-rate mortgages, limiting the number of homes available for sale.

Despite fewer new listings historically, homes are taking longer to sell today. With inventory remaining elevated and fewer buyers entering escrow, sellers are facing increased competition.

📊 Buyer Demand Remains Weak

Orange County buyer demand, measured by pending sales over the prior month, declined from 1,249 to 1,219 pending sales, a 2% decrease. This is the lowest October reading since 2007.

Demand is now 21% below last year’s 1,546 pending sales and substantially below historical pre-COVID levels.

Mortgage rates remain a major factor. The latest report places the average mortgage rate at 7.33%, compared with 6.19% a year ago. Higher borrowing costs continue to affect affordability and reduce the number of buyers who can comfortably purchase a home.

With fewer buyers competing for available properties, sellers must pay close attention to pricing, presentation, and the competition in their immediate market.

📊 How Long Are Homes Taking to Sell?

As inventory increased and demand declined, Orange County’s Expected Market Time rose from 118 to 122 days over the past two weeks. This is the highest reading since January 2019 and the highest October reading since 2010.

Expected Market Time estimates how long it would take to sell all active listings at the current pace of buyer activity.

The differences between property types are notable:

• Condos and townhomes: 131 days, compared with 88 days last year.

• Detached homes: 115 days, compared with 80 days last year.

Detached homes continue to sell more quickly than attached properties, but both segments are experiencing longer market times.

What Does This Mean for Buyers and Sellers?

For Buyers:

A slower market can provide more time to evaluate properties and negotiate. With homes taking longer to sell and more sellers reducing prices, opportunities may exist for buyers who are financially prepared and understand their priorities.

However, affordability remains a key consideration. Buyers should carefully evaluate their financing, monthly payments, and long-term plans. Desirable homes that are priced appropriately can still attract attention.

For Sellers:

Today’s market calls for a deliberate strategy. Accurate pricing, strong presentation, and effective marketing are essential when buyers have more options and are sensitive to value.

Before listing, sellers should understand how their home compares with recent sales and competing properties. Improvements and repairs should also be evaluated carefully to determine which investments are likely to make a meaningful difference.

The goal is not simply to choose the highest possible asking price. It is to position the property to attract qualified buyers and achieve the best possible outcome in the current market.

The Bottom Line

Orange County’s housing market is moving at a slower pace, with inventory holding relatively steady at elevated levels, buyer demand remaining weak, and Expected Market Time reaching 122 days.

The latest report highlights one of the most important factors sellers can control: pricing correctly from day one. Homes that sell without price reductions tend to go pending much faster, while properties that require significant reductions often sell for substantially less than their original asking prices.

For buyers, the slower market may create opportunities to negotiate. For sellers, realistic pricing and a well-executed marketing plan can help a property stand out in an increasingly competitive environment.

Thinking about buying or selling?

Countywide statistics provide useful context, but every neighborhood, property type, and price range has its own market dynamics.

If you're considering a move, the Tim Morissette Group can help you evaluate current competition, understand recent comparable sales, and develop a strategy tailored to your goals.

Visit timmorissette.com to learn more.

Source: Steven Thomas, Orange County Housing Report: The Power of Pricing, October 26, 2026.