Costa Mesa Real Estate Market Update: What to Expect This Winter (December 2025)

Winter has arrived in Costa Mesa, and with it comes one of the most interesting seasonal shifts we’ve seen in the real estate market in years. Whether you’re planning to buy, sell, or simply stay informed, understanding these changes can help you make smart, well-timed decisions as we head into 2026.

Here’s what’s happening right now — and how it impacts you.

Inventory Is Rising, but Quality Homes Still Move Fast

Across Costa Mesa, active inventory has increased slightly heading into December, especially in Eastside Costa Mesa and Mesa Verde. Many homeowners who were waiting for interest-rate stability finally listed their properties this fall, creating more choices for buyers.

But here’s the catch: turnkey and updated homes continue to sell quickly, often receiving multiple offers within the first week.
Buyers are showing strong preferences for:

• Move-in ready properties

• Single-level living

• Homes with ADU potential

• Walkable locations near retail + restaurants

If you’re a seller with one of these features, winter 2025 is still an excellent time to list.

Mortgage Rate Relief Is Bringing Buyers Back

After several months of uncertainty, interest rates have steadied — and even dipped slightly — which has brought more buyers back into the market. We’re seeing:

• Increased showing activity in Eastside Costa Mesa

• Faster absorption of mid-range homes ($1.1M–$1.5M)

• Renewed interest from first-time buyers

• Higher demand for homes near top-rated Newport-Mesa schools

This shift is especially clear in neighborhoods like Mesa Verde, where competitively priced homes are experiencing strong foot traffic and quick offers.

New Construction & Renovations Are Gaining Momentum

Costa Mesa continues to attract investors and homeowners looking to build or renovate, particularly in areas where ADUs, modern design, and indoor-outdoor living are highly valued.

Trends shaping buyer demand this winter include:

• Scandinavian-inspired renovations

• Eco-friendly upgrades (solar, heat pumps, insulation)

• Indoor-outdoor living layouts

• Flexible spaces for remote work or multigenerational living

If you’re considering renovating before selling, these are the features that add the most value in Costa Mesa right now.

Local Lifestyle Is Adding Fuel to the Market

Costa Mesa’s community events, shopping, and restaurant scene continue to be a major draw for new buyers entering Orange County. With holiday events at South Coast Plaza, the Segerstrom Center’s winter performances, and small-business markets across the city, many relocating families are discovering Costa Mesa for the first time.

This increase in lifestyle-driven buyers is especially clear in:

• Westside Costa Mesa

• Eastside Costa Mesa

• The SoBECA district

• Homes near the trail systems and parks

These neighborhoods are seeing higher visibility — and higher competition.

What This Means for Buyers & Sellers Right Now

If You’re a Buyer:

• December is an excellent time to shop — fewer competing buyers.

• Locking a rate now may save you money if demand spikes in early 2026.

• Focus on updated homes; they move fastest.

If You’re a Seller:

• Quality listings still attract strong activity and fast offers.

• Homes with ADU potential are in extremely high demand.

• Prepping your home now positions you perfectly for early-2026 activity.

Final Thoughts

Costa Mesa remains one of the strongest, most resilient real estate markets in Orange County. With steady demand, growing inventory, and renewed buyer confidence, the 2025 winter season is shaping up to be a great window of opportunity — for both buyers and sellers.

Thinking About Buying or Selling in Costa Mesa?

I’d love to help you navigate your options and find the perfect fit.
Contact me here → [email protected]