How Is Southern California’s Real Estate Market?

By Tarah Walker

Tarah Walker is a licensed real estate broker, mortgage loan originator, and property manager in Orange County - proudly serving her clients since 2013. Tarah's dedication to excellence shines through in every transaction. As a committed real estate advisor, her primary goal is to facilitate the sale of your property with efficiency, professionalism, and a personal touch. Whether refining your listing strategy or negotiating favorable terms, Tarah is fully dedicated to your success. If you are seeking a real estate professional who combines expertise with personalized attention, Tarah Walker is here to help make your real estate journey a smooth and successful one.

What are the latest shifts in the Southern California real estate market? As we head further into 2025, I wanted to share some interesting changes in our local area that you might want to know about.

Effects of inventory and mortgage rates on home sales. In Orange County, we’ve seen a 15% increase in homes for sale over the past two weeks, bringing the total to 2,759 homes. That’s the highest number we’ve seen at this time of year since 2020.

A big reason for this uptick is that mortgage interest rates have been hanging above 7%, which has slowed down some buyers. As a result, homes are taking a bit longer to sell, with the average days on the market sitting at about 84 days right now.

Updates on the Fed’s potential rate drop and home affordability. On a national level, the Federal Reserve met on January 29 and left interest rates unchanged. However, depending on what happens in the next few months, we might see some shifts in mortgage rates and affordability. If you’re considering buying or selling, now is a good time to monitor developments.

Impact of the recent wildfire on housing. The recent wildfires have impacted many families, and my heart goes out to everyone affected. This devastation will likely influence housing demand, rental prices, and even insurance costs in high-risk areas. If you know someone who needs help looking for housing, please let them know we’re here to assist.

For any questions about buying or selling, or if you just want to chat about your options, let’s connect. You can reach me at (562) 569-2222 or walkerteamoc@gmail.com. I’d love to help you figure out the best move for you in 2025.