News Analysis The number of homes for sale in Orange County is “the lowest level since tracking began in 2004,” according to the most recent Orange County Housing Report. Furthermore, the federal regulator who determines the size of conforming mortgages in the county is likely to increase the size of mortgages that can be purchased by federally-backed mortgage buyers from about $822,000 to well over $950,000. This will make it easier for more buyers to afford a home in the high-cost county. Low supply with an expected increase in demand will both support higher housing prices going forward. Of course, the housing market can shift quickly if there is some negative economic shock; but, all else equal, higher prices are the most likely way the current demand–supply imbalance is likely to reach equilibrium in the short run. Longer term, higher density, and new home building may actually reduce home prices, …