Let’s get one thing straight: just because interest rates are higher right now doesn’t mean buyers are losing. In fact, if you’ve been waiting for a sign to jump into the market, this might be it — especially here in the highly competitive and desirable Orange County real estate scene.
We’re officially seeing a shift: bidding wars have drastically cooled, inventory is slowly increasing, and sellers are more negotiable than they’ve been in years. Currently, May 1st 2025, there are almost 52,000 active listings in Orange County. Compared to 3,400 active listings in Orange County May 1st, 2024. In places like Newport Beach, where the dream of coastal living meets world-class real estate, buyers are finally getting some of the upper hand back and days on market are growing.
Still skeptical? Here are 3 reasons why a higher interest rate could actually help you land the home of your dreams (yes, really!):
1. Less Competition = More Buying Power
When interest rates rise, many would-be buyers hit the brakes — which means less competition for you. In 2021 or 2022, homes were getting 15+ offers in 48 hours. Today? You might be the only offer on the table, giving you leverage to negotiate a LOWER purchase price, more favorable terms for you, and even seller credits for closing costs or repairs.
Translation: You have a real shot at securing the perfect home without entering a bidding war bloodbath. You also have more time to find the home of your dreams. You no longer have to settle for the wrong home in the right neighborhood- you can finally get all the items on both your “needs and wants” list! Cue the dream kitchen and newly renovated pool!
2. Sellers Are Motivated — and Willing to Deal
In this new market reality, sellers know they need to be more flexible. That dream home you loved but thought was out of reach? It might now come with:
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A price reduction
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Seller-paid rate buy-downs (hello, lower monthly payments!)
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Repair credits or even staged furniture thrown in
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A shot at getting your offer accepted with contingencies intact
Sellers want solid, serious buyers — and in today’s market, that could be you. In fact, I know from first hand experience. I just helped 2 separate sellers get under contract $250,000 and $300,000 under the price that was listed for sale. You could have never imagined that 1-2 years ago!
3. You Can Always Refinance Later — But You Can’t Rewind a Missed Opportunity of a lower purchase price
One of the most powerful buyer strategies right now? “Marry the house, date the rate.” I know a lot of people hate that saying but it’s facts- whether you like it or not! You can always refinance in a few years and some lenders are allowing zero fee refinancing within a specific time frame(depending on current market conditions/rates). You can NEVER change the price you pay for a home.
That charming fixer with the vaulted ceilings, or the updated Newport Beach bungalow a block from the sand? You may get it now — while others sit on the sidelines waiting for rates to drop. And when they do? You’ll be able to refinance and reduce your monthly payment, all while watching your equity grow.
I know this might be a hot take, but I genuinely support what Trump is doing with tariffs. Sure, it might feel like a pinch now, but in just the first month, those policies brought in $15.8 billion to the U.S.—and that’s just the beginning. If all his policies have already led to a huge inflation cut in the first 100 days, imagine the impact over the next six months, next 3.5 years! I truly believe better days are ahead.
And here’s my honest advice for anyone feeling financially stressed or overwhelmed by all the economic noise: turn off the news. Any station. Most of them are funded by advertisers who benefit when you’re anxious and glued to the screen. Fear is profitable—but peace of mind is powerful.
Bottom Line: 2025 is quietly becoming a buyer’s market in Orange County.
Yes, rates are higher. But if you're in the right position — stable income, long-term goals, and the desire to make your move — this could be your best chance to buy the home you've been manifesting.
Need help strategizing your next move in the Orange County real estate market? Whether you’re eyeing homes in Newport Beach, North Tustin, Anaheim Hills, Yorba Linda or anywhere in North Orange County, let’s talk! I’ll help you navigate today’s market likeI already have for other clients. It’s wise to have a professional to understand the real estate market and help find a path that works for you — high rates and all.
📩 Reach out anytime — I’m here to help you win in this market.
