More Home Sellers Are Testing the Market — But Are Orange County Buyers Still Holding Back?

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According to Redfin, “New listings of U.S. homes for sale rose 2.3% year over year during the four weeks ending October 5, the biggest increase in over three months.” Sellers are returning to the market, many hoping that slightly lower mortgage rates—averaging around 6.26%—will reignite buyer interest.

Here in Orange County, we’re seeing a similar pattern. More homeowners are testing the market, especially in neighborhoods like Mission Viejo, Yorba Linda, and Huntington Beach, where home values remain strong. Sellers are eager to take advantage of solid equity gains, even if the pace of sales has slowed compared to earlier this year.

Buyers Are Waiting for Better Conditions

Nationally, “pending sales fell 1.3% from a year ago, the biggest decline in five months.” Many buyers remain hesitant, waiting for rates to dip lower or for the economic outlook to stabilize. Redfin noted that “house hunters are waiting for rates to drop more before making a move,” reflecting a cautious mindset that’s very familiar to us here in Orange County.

Locally, we’re finding that well-qualified buyers haven’t disappeared—they’re simply being strategic. With home prices still elevated and the cost of borrowing high, many are watching the market closely and acting only when they see a property with real value or strong long-term potential.

Homes Are Taking Longer to Sell

The report adds that “the typical home that sells is taking 48 days to go under contract, a week longer than last year and the longest September span since 2019.” While this national figure might sound slow, Orange County homes—especially those priced competitively and presented well—still tend to move faster. However, luxury listings and homes above $2 million are taking more time, as buyers negotiate harder and sellers adjust expectations.

Buyers Regain Negotiating Power

As one Redfin agent noted, “It’s a buyer’s market, with house hunters asking for price reductions, doing inspections, and requesting concessions.” We’re seeing this trend locally, too. Buyers are more confident in asking for repairs, closing credits, or interest rate buydowns, particularly when a home has been sitting for several weeks. Sellers who remain flexible are the ones securing successful deals in today’s environment.

In Orange County, where the median home price remains far above the national average, those willing to negotiate are finding creative ways to bridge the affordability gap—sometimes with incentives like paid HOA fees, furniture inclusions, or rate buydown offers.

Opportunity in Condos and New Construction

Redfin also pointed out that “buyers looking for a deal may want to consider condos, as there are 72% more condo sellers than buyers nationwide.” This is particularly relevant in Orange County, where condo inventory has grown in areas like Irvine, Aliso Viejo, and Costa Mesa. For first-time buyers or downsizers, these options often provide a more affordable entry point into competitive neighborhoods.

Similarly, new construction communities in South Orange County and inland cities such as Rancho Mission Viejo and Lake Forest are offering builder incentives—like temporary mortgage-rate reductions—to attract qualified buyers.

Bottomline

While national data shows that “buyers aren’t budging,” Orange County’s market remains full of opportunities for those who are ready to move. With more homes hitting the market and sellers showing greater flexibility, savvy buyers can find leverage that was rare just a year ago.

If you’re considering buying or selling in Orange County, Whitestone Real Estate is here to guide you through today’s evolving market. Let’s turn timing and strategy into your advantage—reach out today to start the conversation.

Reference: Anderson, D. (2025, October 9). More home sellers test the market, but buyers aren’t budging. Redfin.