Orange County Mid-January Housing Market Update for 2026

Are you wondering what is really happening in the Orange County housing market right now? With home prices staying high, listings staying low, and interest rates shifting, it can feel confusing to know whether this is a good time to buy or sell. That is why a mid January market update is so helpful.

Let’s break down the key trends in Orange County in a way that is easy to understand.

Inventory is still very limited. One of the biggest updates is that there are few homes for sale right now. In one local area, there were only about 97 active homes listed. Across Orange County, there are only about 3,000 homes on the market. That is a small number for such a large county. When there are fewer homes to choose from, buyers often have to act fast, and sellers may still have an advantage.

Home prices remain steady and strong. Orange County home prices are still holding firm. The median home price is sitting around $1.1 million to $1.2 million. That means most homes are still selling at very high values. The update also pointed out how much homes have appreciated over time. For example, homes that sold for around $35,000 decades ago are now worth close to $1.5 million. This shows how powerful long-term homeownership has been in this area.

Homes are selling quickly. Even though prices are high, homes are still moving fast. About half of the listings mentioned were already in escrow, meaning they were under contract. This tells us that buyers are still active and motivated. When inventory is low, and demand stays strong, homes do not sit on the market for long.

Interest rates are lower than historic highs. Mortgage rates today are very different from those of past decades. In the 1980s, rates reached over 12%. Right now, mid-January interest rates are closer to about 5.85% to 6.25%, depending on your credit and financial situation. While rates are higher than a few years ago, they are still much lower than the historic extremes, and many buyers are adjusting to the new normal.

What this means for buyers and sellers. Overall, Orange County remains a competitive market. Inventory is tight, prices are steady, and buyers are still making quick decisions. If you are thinking about buying, it is important to be prepared. If you are considering selling, this low supply environment may work in your favor.

If you want expert guidance on the Orange County real estate market, now is the time to connect with a local professional. Call Kevin Smith today at (619) 379-7664 or visit kevinsmithsells.com to get personalized advice, the latest housing stats, and a clear plan to help you buy or sell with confidence in 2026.