ORANGE COUNTY, CA—The high price of homes in Orange County is keeping many Millennials out of the residential market, Keith Thomas Jr., a local Redfin real estate agent, tells GlobeSt.com. Thomas says, “If I had to write a tweet and sum up the OC Millennial homebuyer in 140 characters or less, I'd say 'Millennials are very cautious when buying in the OC real estate market—rightfully so, as median prices are much higher than many can afford.' ”

Redfin recently came out with a report that showed a disconnect between homebuyers and sellers across the county. According to the report, an increase in the number of homes for sale hasn't been enough to bring them back to the market; affordability and financing hurdles are now holding them back. Also, sellers have been slow to realize that the market is shifting away from their favor.

The report also shows that sellers are losing ground quickly in agents' eyes. Across Redfin markets nationwide, just 24% of agents surveyed said that sellers have all the power in their market, down from 35% just three months ago. Sellers have lost the most ground in Midwest markets such as Chicago and Minneapolis, where only 12% of Redfin agents now think sellers are holding all the cards, down from 24% last quarter. In both the West and Northeast markets, 30% of agents said that sellers still have all the power, but that was also down from 38% and 33% last quarter, respectively.

“Our latest market sentiment report is definitely reflective of what's going on in the OC housing market—only the OC is more extreme,” says Thomas. “From flash sells to homes just sitting, the market has been very dynamic over the past year. After a huge price appreciation we saw in 2013, the perceptions of buyers and sellers have been on completely different pages, which has led to some rising inventory due to overpricing. Overall, though, we are seeing some balance return, and buyers are regaining leverage when it comes to getting a fair price on their dream home.”

Thomas adds that although affordability remains a valid concern, there is still pretty heavy competition for attractively priced turnkey homes. “Although OC prices are still relatively high, it remains a good time for buyers in our market. Interest rates remain low, buyers are in a better position to negotiate these days, and rents are through the roof in the OC.”

As GlobeSt.com has reported previously, thanks to technology, buyers are much savvier than they were in the past. “First-time buyers and buyers new to the OC market have really seen the drama unfold before their eyes,” says Thomas. “As a result, most of them are coming really well equipped with lots of data and information at their fingertips. For the most part, we have lots of able buyers who are still very cautious about overpriced homes. The best thing a seller's real estate agent can do is help their seller to price their home appropriately—if priced right, homes are still selling rapidly.”