Is Now a Good Time to Buy a Home in Orange County?
By Bryan Suarez, Local Real Estate Agent Serving Mission Viejo, Lake Forest, Rancho Santa Margarita, Aliso Viejo, Laguna Niguel, and Surrounding Areas
If you’ve been watching the headlines, you might think the window to buy in Orange County has slammed shut. Between tight inventory, rising rates, and affordability pressure, it can feel like every market indicator is working against you. But what if the story is more nuanced?
As your local agent in South Orange County, here’s my take on where things stand—and how a well-informed buyer can still win today!
1. Inventory is loosening — just slowly
Good news first: active listings in OC have ticked upward. As of today, inventory sits at around 4,462 active listings, up nearly 20% year-over-year. While that sounds like a big jump, it’s still far below historical norms.
Still, that increase gives buyers more breathing room than we’ve seen in past years when inventory was extremely tight.
However, in many OC neighborhoods — especially in South County — the best properties (move-in ready, good schools, good condition) still move quickly when priced right.
2. Mortgage rates are high — and making affordability tricky
Mortgage rates are hovering in the low-6% to mid-6% range, which is far from the 3–4% days many of today’s sellers locked in.
What does that mean in practice? The same home you might have qualified for two years ago can now carry a significantly higher monthly payment, eating into your buying power.
Still, the recent Fed cut in September 2025 may help temper upward rate pressure over time, though rates won’t instantly mirror the Fed’s move.
If rates dip further (say toward high 5’s), we will see a pickup in buyer activity.
3. Prices and negotiation terms are softening slightly
Because buyers are more cautious at these rates, sellers are beginning to show flexibility. The gap between list price and sold price has widened in recent weeks, with deals closing closer to 2–3% below asking.
Homes are also staying on the market a bit longer than in hyper-heated markets of years past.
Still, I wouldn’t expect a collapse in prices — land remains scarce, and demand from motivated buyers is still real.
4. The timing question: Buy now or wait?
Here’s my honest guidance — for many buyers, now is still a reasonable time to buy, but it depends heavily on your situation and strategy.
✅ When buying now makes sense:
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You’re ready to commit (financing lined up, good credit, clear goals).
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You find a home you can love for 5–10+ years (ride out rate fluctuations).
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You’re less concerned about being “perfectly timed” and more focused on securing what fits your life.
🕰️ When waiting might be smarter:
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You’re extremely rate-sensitive and want to see rates drop further.
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You have flexibility — your timeline isn’t urgent.
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You’re eyeing a market segment where inventory is especially constrained and you believe upcoming listings will shift the balance.
One risk of waiting: if rates fall, more buyers flood in, and competition and prices might tighten again. If you wait too long, the “better deal” might slip away.
5. Strategy tips for the OC buyer in 2025
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Get rate-locked early when your offer is accepted — even ask for a float-down clause if possible.
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Look beyond the “perfect” home. A good house in a good area can be improved; waiting for perfection may leave you out.
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Target overlooked or transitional neighborhoods — you may find better deals there.
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Ask sellers for concessions. With buyer hesitation, you might get closing cost help or minor repairs included.
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Stay nimble. If rates dip or new inventory hits, be ready to engage quickly.
Final Word
Yes, the combination of higher interest rates and still-limited inventory makes today’s Orange County housing market more challenging than recent years. But it's not impossible — demand hasn’t vanished, and there are smart ways to approach buying that mitigate risk.
So, is now a good time? For motivated, prepared buyers who aren’t chasing perfection, the answer is yes with caution. If you want to explore what your options look like right now—whether in Laguna Niguel, San Juan Capistrano, or anywhere across South County—let’s map out a plan together.
Ready to see what your buying power looks like today (or in 6 months)? Shoot me a message, and I’ll walk you through it.
-Bryan
📞 (949) 522-7502
📧 [email protected]
Bryan Suarez Real Estate | Top Realtor in Mission Viejo, Orange County
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