Orange County, California, has long been one of the U.S.A.’s most competitive and expensive housing markets. Today, buyers are navigating economic uncertainty, elevated mortgage rates, and limited inventory. Despite stretched affordability and higher borrowing costs, Orange County (O.C.) home prices continue to climb, and many homes still attract multiple offers. So, is O.C.’s housing market cooling off, or are home prices about to climb higher?
In episode 15 of RiskWire: On the House, Veros’ Senior Research Economist Reena Agrawal speaks with Southern California REALTOR® Salee Zawerbek of FirstTeam® Real Estate. Salee has over two decades of real estate experience and specializes in helping homebuyers and sellers achieve their goals within the neighborhoods of Irvine, Anaheim, and many other cities in the O.C. Regarding the current market dynamics, Zawerbek noted that it feels as though “the market finally exhaled,” describing a shift away from the intense bidding wars that characterized O.C. housing in recent years. Agrawal and Zawerbek’s conversation explored O.C. home prices, buyer confidence, seller expectations, and the current outlook for the local housing market.
Key takeaways from the episode:
- O.C.’s housing market isn’t crashing; it’s rebalancing. Buyers have regained some negotiating power. At the same time, many sellers entering the market are doing so out of necessity, such as relocation, downsizing, or family changes.
- Economic uncertainty may be weighing on buyers more than mortgage rates. As Zawerbek explains, buyers are no longer asking, “Can I afford this today?”, but rather, what happens if their industry contracts in a few months. Concerns about long-term employment stability, geopolitical tensions, and AI disruptions are causing many buyers to hesitate and lean on negotiating monthly mortgage payments.
- When asked what she would change about O.C.’s housing market, Zawerbek highlighted the need for more affordable housing options for first-time buyers. She argued that having more townhomes, ADUs, and other entry-level housing opportunities would strengthen every rung of the housing ladder and improve accessibility throughout the market.
Interested in discovering more insights from this discussion? Watch episode 15 of RiskWire: On the House today: Webcast & Interviews – RiskWire, powered by Veros
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