The Federal Reserve cut rates yesterday, and the timing couldn’t be more impactful for Southern California real estate. With lower borrowing costs colliding with shifting trends in both Orange County and Los Angeles County, buyers and sellers alike are seeing fresh opportunities. Here’s what’s happening right now—and what it means for you.
Rates Are Easing Just as Inventory Tightens
Mortgage rates are already showing signs of relief following the Fed’s move. In Orange County, active listings dropped by 111 homes over the last two weeks—a 2% decrease—bringing us to 4,758 homes for sale. While still 22% higher than last year, the recent decline signals tightening supply.
In Los Angeles County, there were 4,267 homes sold in August 2025, a drop of 8.2% compared to last year. Fewer homes hitting the market, combined with softer mortgage rates, point to conditions where competition could intensify in the coming months.
Buyer Demand Is Climbing
In Orange County, pending sales rose by 32 homes, bringing us to 1,591 pending transactions—an 11% increase over last year. Los Angeles County, though seeing fewer closed sales, is showing signs of steady buyer interest at mid-level price points. With the median sale price at $909,500 in August 2025 (up 1.1% YoY), buyers are clearly willing to act when affordability improves.
Homes Are Selling Faster
Orange County’s market time dropped from 94 to 90 days—the lowest since June. In Los Angeles County, the median days on market was 53 in August, up from 39 a year earlier but still competitive for a county of its size. Lower rates and limited supply are expected to accelerate the pace of sales across both counties this fall.
Sellers Hold the Advantage
Equity sales dominate in Orange County, where sellers averaged 98.5% of asking price. In Los Angeles County, sellers remain in control as well: homes sold for 99.3% of list price in August 2025. This shows buyers are still paying close to asking, a trend that will strengthen as more qualified buyers return to the market with improved financing options.
Even Luxury Homes Are Moving
Luxury is responding too. In Orange County, homes priced between $2.5M and $4M saw market time drop from 196 to 163 days. In Los Angeles County, the luxury sector is also showing signs of momentum, as high-net-worth buyers take advantage of lower rates and a slightly more balanced playing field.
What This Means for You
Whether you’re in Orange County or Los Angeles County, this moment matters. Buyers are re-engaging, sellers are gaining leverage, and homes at every price point are benefiting from improved affordability and heightened demand.
Reach out today and let us guide you toward a move that truly aligns with your goals, your timing, and your peace of mind.
Rates Are Easing Just as Inventory Tightens
Mortgage rates are already showing signs of relief following the Fed’s move. In Orange County, active listings dropped by 111 homes over the last two weeks—a 2% decrease—bringing us to 4,758 homes for sale. While still 22% higher than last year, the recent decline signals tightening supply.
In Los Angeles County, there were 4,267 homes sold in August 2025, a drop of 8.2% compared to last year. Fewer homes hitting the market, combined with softer mortgage rates, point to conditions where competition could intensify in the coming months.
Buyer Demand Is Climbing
In Orange County, pending sales rose by 32 homes, bringing us to 1,591 pending transactions—an 11% increase over last year. Los Angeles County, though seeing fewer closed sales, is showing signs of steady buyer interest at mid-level price points. With the median sale price at $909,500 in August 2025 (up 1.1% YoY), buyers are clearly willing to act when affordability improves.
Homes Are Selling Faster
Orange County’s market time dropped from 94 to 90 days—the lowest since June. In Los Angeles County, the median days on market was 53 in August, up from 39 a year earlier but still competitive for a county of its size. Lower rates and limited supply are expected to accelerate the pace of sales across both counties this fall.
Sellers Hold the Advantage
Equity sales dominate in Orange County, where sellers averaged 98.5% of asking price. In Los Angeles County, sellers remain in control as well: homes sold for 99.3% of list price in August 2025. This shows buyers are still paying close to asking, a trend that will strengthen as more qualified buyers return to the market with improved financing options.
Even Luxury Homes Are Moving
Luxury is responding too. In Orange County, homes priced between $2.5M and $4M saw market time drop from 196 to 163 days. In Los Angeles County, the luxury sector is also showing signs of momentum, as high-net-worth buyers take advantage of lower rates and a slightly more balanced playing field.
What This Means for You
Whether you’re in Orange County or Los Angeles County, this moment matters. Buyers are re-engaging, sellers are gaining leverage, and homes at every price point are benefiting from improved affordability and heightened demand.
Reach out today and let us guide you toward a move that truly aligns with your goals, your timing, and your peace of mind.
For more insights on real estate and estate planning explore our blog and connect with our expert team.
Let Aragone & Associates guide you through the process, helping to make the transition seamless. Call us at 949-415-4784 or email us at [email protected].
Disclaimer: We are not real estate attorneys, and the information provided should not be considered legal advice. We strongly recommend consulting with qualified legal counsel regarding your specific situation. If you do not currently have legal representation, feel free to reach out to us, and we can connect you with one of our trusted attorneys.