Orange County Real Estate Market Update | August 2026

As summer winds down, the Orange County real estate market is showing signs of stability rather than dramatic change. Home values remain strong, inventory is giving buyers more choices, and properties are taking a little longer to sell as buyers become increasingly selective about price and condition.

The overall picture is one of a market finding its balance. Sellers can still achieve strong results, but the days of simply putting a home on the market and expecting immediate offers are largely behind us. Buyers have more room to compare properties and negotiate, while homes that are priced and presented correctly continue to stand out.

Pricing Trends

Orange County home prices remain remarkably resilient.

• Median sold price: approximately $1,245,000
• Year-over-year change: up approximately 5.5%
• Median listing price: approximately $1,349,500
• Year-over-year change in listing price: down approximately 3.8%

The difference between rising sale prices and softer asking prices is worth noting. Sellers appear to be adjusting expectations as buyers become more price-conscious, yet completed sales continue to demonstrate the underlying strength of Orange County property values.

Higher-end homes remain particularly sensitive to pricing. With more luxury inventory available, buyers in this segment have become increasingly selective and willing to wait for the right property.

Days on Market

Homes are generally taking longer to find a buyer than they did during the highly competitive markets of recent years.

• Median days on market: approximately 48 days
• Local late-August data showed median marketing times moving into the mid-40-day range
• Higher-priced properties generally require more time to sell

By the end of August, the seasonal slowdown associated with the end of summer and the return to school was becoming more apparent. This doesn't necessarily indicate declining demand—it reflects buyers taking more time to evaluate their options.

Homes that are priced correctly from the start are still moving substantially faster than listings that enter the market above buyer expectations.

Inventory & Supply

Buyers continue to benefit from a healthier selection of homes compared with the extremely inventory-constrained market of several years ago.

Countywide listing data shows more than 8,000 properties available under Realtor.com's broader inventory methodology, with inventory essentially unchanged from the same period last year.

Local Orange County market tracking showed approximately 5,100 active listings at the end of August under its narrower reporting methodology. More importantly, inventory had declined for three consecutive weeks heading into September as closings continued to absorb available supply.

The takeaway is that Orange County has more inventory than buyers became accustomed to during the pandemic-era market, but there is still no indication of excessive supply.

Sales & Buyer Demand

Buyer demand remains steady, although purchasing decisions are becoming more deliberate.

Homes sold for approximately 99% of their asking price on average during August, demonstrating that buyers are still willing to pay close to asking when they believe a home represents fair market value.

At the same time, the gap between asking and selling prices becomes more noticeable as prices rise. Luxury buyers in particular have greater negotiating leverage, while appropriately priced properties in the county's most desirable neighborhoods can still attract significant interest.

What We're Seeing in the August Market

1. Prices Are Holding Up

Despite higher mortgage rates and more inventory, Orange County home values continue to show year-over-year gains. That speaks to the fundamental strength and desirability of the local market.

2. Buyers Are More Selective

Buyers have more options and are less inclined to overlook condition issues or aggressive pricing. Homes need to compete not only on location but also on presentation and value.

3. Pricing Is Driving Results

The strongest-performing listings tend to be those that are positioned correctly from the beginning. Overpricing can result in longer market times and ultimately create the need for price reductions.

4. Luxury Is Its Own Market

Properties above $2 million are generally taking longer to sell than the broader market. Buyers at this level have more choices and are negotiating more aggressively, making realistic pricing particularly important.

The Bottom Line

Orange County enters the fall market in a relatively stable position. Prices remain historically strong, buyer demand continues, and inventory is providing consumers with more choices without creating an oversupplied market.

For sellers, success increasingly depends on getting the price, preparation, and marketing right from day one. For buyers, today's environment offers something that has been difficult to find in recent years: more time, more selection, and greater ability to negotiate.

The Orange County market isn't experiencing a dramatic shift in either direction. Instead, it appears to be settling into a healthier, more balanced pace as we head into the final months of 2026.