OC Housing Report

By Uncategorized December 23, 2025
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A 2026 Forecast

HAPPY NEW YEAR!!! Now, what does that mean for Orange County real estate?

First, let us look back at what happened in 2025 in terms of inventory, demand, luxury properties, and the Expected Market Time. 

The inventory climbed to its highest level since 2019 and experienced its first normal summer peak in years. The year started with an active inventory of 2,343 homes, the third-lowest level at the start of a year since tracking began in 2004, behind only 2022 and 2023. The average start before the pandemic (2017 to 2019) was 4,500 homes, a considerable 92% higher. The limited supply has defined the Orange County housing market for years now. Yet in 2025, the number of available homes blossomed, growing by 116% to an end-of-July peak of 5,071 homes, its highest peak since 2019’s 7,601 homes. The annual peak typically occurs between July and August, but over the past couple of years, it has been delayed due to higher rates in the fall. 

From July until the year’s end, the number of available homes dropped by 38% to 3,159. The end of 2025 was 29% below the 3-year average end-of-December (2017 to 2019) of 4,479. The beginning of 2026 will be the highest start since 2020, with about 3,000 available homes to purchase. 

Screenshot 2026-01-05 102204

 

 

 

 

 

 

 

 

Excerpt taken from an article by Steven Thomas.

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About The Author

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Tim Morissette, REALTOR®

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 48 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 29 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.