The OC Housing Report - 7/20/26

Welcome to the “Lull Phase” (Yes, That’s Really What It’s Called)

I don’t know about you, but I’ve had that airport moment: bags checked, ready to go, and the departure board flips to “DELAYED.” Then it flips again. That’s pretty much what a lot of Orange County sellers are feeling right now.

Homes are hitting the market with all the usual excitement, a few showings, maybe an open house, and then… crickets. No offer. This month’s report actually nicknamed the current stretch “The Lull Phase,” and honestly, that tracks. Buyer demand has cooled, seller competition is at its highest point in years, and a growing number of sellers are simply pulling their listings.

Here’s where things actually stand, with my take on what it means if you’re buying or selling in Orange County this summer. Want the full data-nerd version? I’ve linked the complete July 20th report at the bottom of this post.

64% of Homes Have Been Sitting for a Month or More

That’s not a typo. Nearly two-thirds of everything on the market in Orange County has been sitting for 30+ days, and 41% have blown past the two-month mark. Homes above $2.5 million are having the roughest go of it: at least half have been on the market two months or longer without a buyer.

Even the “affordable” end isn’t immune: below $750,000, 43% of listings have been waiting 60+ days for an offer.

Inventory Just Had Its Biggest Jump Since January

Active listings jumped by 323 homes in the last couple of weeks alone, up 7%, bringing the total to 5,020, the highest level since last July. That’s the largest two-week increase since mid-January.

For context, that’s still 35% below the pre-COVID (2017-2019) average of 6,776 homes, so we’re not exactly drowning in inventory. But the direction is clear: more homes, and not enough buyers to match.

Sellers Are Throwing In the Towel, A Lot of Them

From January through June, 3,669 sellers pulled their homes off the market. That’s up 11% from last year, and more than double what we saw in 2024. To put that in perspective, that number of pulled listings equals 73% of everything currently for sale in the county.

I get it, nobody wants to keep resetting showings for an open house nobody shows up to. But pulling the plug isn’t always the right move (more on that below).

Demand Just Had Its Worst Two-Week Drop of the Year

Buyer demand, new pending sales, fell from 1,558 to 1,472, down 6% in just two weeks. That’s the lowest mid-July reading since this report started tracking data back in 2004.

Mortgage rates are a big part of the story here. They just hit 6.55%, their highest point of the year, following rising gas prices and ongoing global tension. Rates are the gas pedal for this market: when they climb, buyers ease off, plain and simple.

It Now Takes 102 Days to Sell Everything on the Market

The Expected Market Time, basically how long it would take to sell every OC listing at the current pace, jumped from 90 to 102 days. That’s the slowest reading since the COVID lockdown in April 2020.

Detached homes are still moving faster than condos and townhomes (96 days vs. 112 days), but both are sluggish compared to a year ago.

The Luxury Market Slowed Down Even More

Homes above $2.5 million now have an Expected Market Time of 193 days, up from 171 just two weeks ago. On the very high end, above $6 million, it’s stretched to 341 days. At that pace, a seller listing today might not see a pending sale until around January 2027.

The Bright Spot: Priced Right, Homes Still Sell Fast

Here’s the part that gets buried in all the doom and gloom: in June, 50% of closed sales went pending within their first two weeks on the market. The sales-to-list price ratio was still 99.9%, and 99.7% of sellers closed with equity in hand (only a tiny fraction were short sales or foreclosures).

The takeaway isn’t “the market is broken.” It’s that pricing, condition, and presentation matter more than they have in years.

What This Means For You

If you’re selling: Don’t guess at your price and hope for the best, that’s exactly how homes end up sitting for two, three, four months. Price it to the market’s actual pulse from day one. A home priced right and shown well is still selling in two weeks, even in this environment.

If you’re buying: Less competition and more inventory means more room to negotiate than we’ve seen in a while. If financing allows, this lull is arguably a better window than the frenzy of a hot spring market.

Curious what any of this means for your specific home or your search? I’m always happy to talk it through, no pressure, just a conversation. Reach out anytime.

Full Report: View the Complete July 20, 2026 Orange County Housing Report

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