Orange County Buyers Gain Momentum as Pending Home Sales Rise

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Pending home sales rose by 1.6 percent year-over-year during the four weeks that ended on Aug. 27, marking two straight months of increases in pending sales, according to Redfin. This steady rise signals a healthier housing market and renewed confidence among buyers.

More Affordable Homes Hit the Market

Online platform Zillow reported that about 439,000 homes for sale in July were affordable to a household earning the median income—a 20-percent jump from 2024 and the highest total since August 2022. More inventory means more options, but prices still remain high compared to pre-pandemic levels.

Mortgage Rates Decline

The 30-year fixed mortgage rate has gone down to 6.56 percent for the week that ended on Aug. 28. Rates haven’t dipped this low since October 2024. For buyers, this drop in rates could mean improved affordability and better financing opportunities.

Buyer and Seller Psychology

“Buyers are circling,” said Ali Mafi, a Redfin agent in San Francisco. Many are testing the market now, while others wait, hoping rates will fall further. But experts caution that waiting too long could backfire if competition heats up again. On the flip side, sellers are seeing homes sit longer, with some delisting properties after not receiving offers they expected.

Affordability Still a Challenge

Despite the increase in affordable listings, Zillow found that only 31.7 percent of homes in July were affordable to median-income households, compared with 53.7 percent in July 2020. Rising mortgage costs—about $1,000 more per month than pre-pandemic—are keeping many first-time buyers on the sidelines.

Market Outlook

With new listings up 1.9 percent year-over-year and 36.3 percent more sellers than buyers in the market, conditions still favor buyers for now. However, if the Federal Reserve follows through on potential rate cuts, demand could surge, leading to tighter inventory and higher prices.

Bottomline

Orange County remains one of the most desirable places to live, and today’s buyer-friendly conditions may not last long. If you’re considering a move—whether buying your dream home or selling for maximum value—now is the time to act. At Whitestone Real Estate, I help buyers and sellers navigate these shifts strategically. Contact me today, and together we’ll bring your Orange County real estate vision to life.

Reference: Athrappully, N. (2025, September 1). Pending home sales rise as affordable listings climb to highest level since 2022. The Epoch Times.