Why Are Prices Stable When They Should Be Falling?

Irvine Condo Quiz

Which group is helping keep condo prices relatively stable despite rising inventory?

A. Investors are buying to hold (rent)

B. Buyer demand is high

C. Sellers taking listings off the market

Answer: C.

Many buyers are puzzled by today’s market. Inventory is higher, listings are taking longer to sell, and pending sales have slowed. Yet prices haven’t fallen nearly as much as many expected. One reason may be the growing number of sellers simply deciding not to sell.

Here’s what I’ve been seeing in some Irvine condo communities so far in 2026:

I did a breakout of the 1 bedroom listings in Watermarke as they had 8 1-bedroom listings at the time of publishing this blog.

Perhaps the biggest difference between today and 2010 is that many sellers aren’t forced to sell. Back then, banks and distressed owners often kept reducing prices until a property finally sold. Today, many owners have low mortgage rates, substantial equity, or even own their condos free and clear. Instead of participating in a pricing war, they’re taking their homes off the market and waiting for better conditions.

I’ve seen firsthand how quickly inventory can change. I recently had what I considered the third-best listing in a community based on price and overall desirability. Then one weekend, one competing listing went into escrow while another owner pulled their home off the market. Suddenly, without changing my price, my listing became the best option available and entered escrow shortly afterward.

In another example, an agent called me asking why his listing hadn’t sold. I suggested emphasizing some of the unit’s strengths, such as its top-floor location, and improving the readability of the marketing remarks. Whether that made a difference or not, I don’t know. What I later learned was that the property had already spent six months on the market without an offer. After relisting with only about a $10,000 reduction, it finally sold roughly three months later. In total, the seller spent nearly eight months waiting for the right buyer. Sometimes, even in a slower market, patience can become a war of attrition.

This doesn’t mean prices can’t decline. But inventory alone doesn’t determine values. Motivation does. If enough owners are willing to wait, rent their property, or simply pull it off the market, price declines tend to happen much more slowly than they did during the foreclosure era.

That’s why today’s market isn’t behaving like 2010. Back then, sellers were forced to compete. Today, many have the luxury of patience.

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