The Gap Between Attached and Detached Homes Is Growing
The Orange County housing market is still moving through a slower and more balanced phase, but this latest report highlights something especially interesting: not every type of home is experiencing the market in the same way.
Right now, condos and townhomes are facing a much tougher market than detached homes.
Traditionally, attached homes have been one of the more accessible entry points for first-time buyers. A lower purchase price often made condos and townhomes an attractive alternative to single-family homes.
But today, that affordability advantage is starting to shrink.
Between rising HOA dues, higher mortgage rates, stricter lending requirements, and growing concerns about building reserves, buyers are becoming much more cautious when looking at attached properties.
Condos Are Taking Longer to Sell
The difference in market speed is becoming hard to ignore.
Attached homes, including condos and townhomes, now have an Expected Market Time of 114 days, compared to just 93 days for detached homes.
That's also a major shift from last year. Attached homes were taking around 90 days to sell, while detached homes were taking approximately 98 days.
In other words, detached homes are moving a little faster, while condos and townhomes are slowing down significantly.
This doesn't mean condos aren't selling. They are.
But buyers clearly have more hesitation and more options, which means attached-home sellers are facing increased competition.
Inventory Is Moving in Opposite Directions
Another major difference is inventory.
Attached home inventory has increased 17% year over year, rising from 1,912 homes to 2,231.
Meanwhile, detached home inventory is actually down 11%, falling from 3,159 homes to 2,815.
More condos are coming onto the market while the supply of detached homes remains tighter.
That difference alone helps explain why detached homes are continuing to outperform attached properties.
When buyers have more condos and townhomes to choose from, they don't feel the same pressure to make a quick decision.
The Real Cost of Owning a Condo Is Going Up
One of the biggest factors affecting the attached-home market is the cost beyond the purchase price.
The median monthly HOA dues for attached homes reached $507 in June.
For a buyer already dealing with elevated mortgage rates, property taxes, insurance, and other expenses, adding a significant monthly HOA payment can change the affordability equation pretty quickly.
And those costs may not be going away anytime soon.
Starting in January 2027, reserve requirements for certain properties are expected to increase from 10% to 15% of budgeted assessment income.
That could mean higher HOA dues or additional special assessments for some communities.
For buyers, this makes it even more important to look beyond the listing price and understand the full monthly cost of owning the property.
Financing Is Becoming More Complicated
Lending requirements are also becoming stricter for condo buyers.
As of August 3, streamlined review processes previously used for some condo projects were eliminated, meaning more comprehensive underwriting may now be required.
That can make the financing process more detailed and potentially slower for condo buyers.
For buyers considering an attached property, the financial health of the HOA and the condition of the community may play an even bigger role in whether financing moves forward smoothly.
Prices Are Starting to Tell the Same Story
The difference between attached and detached homes is also showing up in home values.
Attached home values recently dipped from $762,489 to $760,391, while detached home values increased slightly from $1,303,939 to $1,305,471.
Year over year, attached homes are up only 0.4%, compared to 1.9% for detached homes.
The numbers may seem small, but the direction matters.
Detached homes are continuing to show more resilience, while attached homes are experiencing softer price growth.
The Overall Market Is Still Stable
Even with these changes, Orange County's overall housing market remains healthy.
Active listings sit at 5,046 homes, while buyer demand increased slightly to 1,494 pending sales. Expected Market Time improved marginally from 102 to 101 days.
The luxury market also saw some improvement, with Expected Market Time for homes above $2.5 million dropping from 193 to 181 days as demand increased.
Distressed properties remain extremely rare, representing just a small fraction of available homes.
And in June, 1,994 homes closed, up 9% compared to the same period last year. The sales-to-list price ratio remained strong at 99.9%.
This is not a market in distress. It's a market where buyers are becoming much more selective about what they purchase.
What This Means for Condo Sellers
For condo and townhome sellers, the market is becoming increasingly competitive.
Buyers are paying attention not only to the home's price and condition, but also to HOA dues, community finances, potential assessments, and financing requirements.
Pricing correctly from the beginning is going to be especially important.
A condo that is priced based only on what a detached home market was doing a few months ago may struggle to attract attention.
Presentation, pricing, and understanding what buyers are comparing your property against all matter.
What This Means for Buyers
For buyers, the attached-home market could present some interesting opportunities.
With inventory increasing and homes taking longer to sell, buyers may have more room to negotiate than they would in the detached market.
But the key is looking at the complete financial picture.
The lowest purchase price doesn't always mean the lowest monthly cost.
Before making an offer, buyers should carefully consider mortgage payments, HOA dues, taxes, insurance, and the financial health of the homeowners association.
Looking Ahead
The “Condo Conundrum” is really about a shift in what affordability looks like in Orange County.
Condos and townhomes are still generally more affordable than detached homes based on purchase price alone. But rising HOA costs, stricter lending requirements, and elevated mortgage rates are making buyers think more carefully about whether that lower price actually translates into a more affordable monthly payment.
Meanwhile, detached homes continue to benefit from tighter inventory and steadier demand.
The gap between these two markets could continue to grow in the months ahead.
For sellers, understanding which market your home is competing in has never been more important.
And for buyers, this is a reminder that finding the right home isn't just about the listing price.
It's about understanding the full cost of ownership and making sure the numbers work for your lifestyle and long-term goals.
