What To Expect in the Orange County Housing Market in 2025

What happened in OC’s housing market in 2024 and what's ahead for 2025?

What happened to the housing market in 2024? I know many are probably waiting for the housing market to crash so they can buy a home in Orange County. However, that didn’t happen. While this may be disappointing for buyers, it’s great news for homeowners.

What does this say about the market moving forward? Let’s take a quick look at how 2024 performed compared to 2023 and what could be in store for 2025 and beyond.

2023: A standout year. Starting with only 2,503 active listings, about a third of the inventory typically expected in a balanced Orange County market. Despite rising interest rates, we saw home prices skyrocket, with a remarkable 14% appreciation in median home prices.

2024: Tight inventory and strong appreciation. In 2024, the market started even tighter, with just 1,747 active listings. While interest rates fluctuated significantly, bouncing between 6% and 8%, Orange County still experienced an impressive 7.8% appreciation.

“Even with stable rates, Orange County's real estate market is set to grow.”

What’s ahead for 2025? Predicting the future is uncertain, but experts expect interest rates to range between 5.75% and 7.5%, likely settling near 6%. If rates drop further, price appreciation could accelerate. Even with stable rates, Orange County's real estate market is set to grow, fueled by strong demand from Los Angeles and San Diego movers, making it a top California destination.

Why does real estate keep appreciating? People often think that affordability or the economy will cause big shifts in real estate, but history tells a different story. Over the last 80 years, home prices have mostly gone up, with just one big drop during the 2007–2011 financial crisis. Real estate keeps climbing because of inflation, higher building costs, and steady demand.

Orange County continues to attract people from Los Angeles and San Diego, keeping the market vibrant. If you have questions, are searching for your dream home, or considering selling, I’m happy to help. Give me a call or send me a message!