Costa Mesa Real Estate Update: A Slow Start, But Signs of Hope for 2026
The Orange County housing market is starting 2026 a little slower than usual, especially here in Costa Mesa. In fact, this is the slowest start to a year we’ve seen since 2019. That might sound worrying at first, but slow doesn’t mean bad. It simply means buyers and sellers are easing back into the market after the holidays, and everyone is taking a moment to see where mortgage rates and prices are heading next .
Right now, mortgage rates are lower than they were last year, sitting just above 6%. That’s important because lower rates make homes more affordable and help buyers feel confident again. Even though buyer demand dipped at the end of the year — which is very normal — the report explains that demand usually rises quickly from mid-January through spring. As rates stay lower, more buyers are expected to jump back into the Costa Mesa real estate market .
Another big change is inventory. The number of homes for sale dropped sharply during the holidays, leaving fewer choices for buyers at the start of the year. However, this is temporary. As we move through winter and into spring, more homeowners are expected to list their homes. This could create a healthier balance between buyers and sellers across Orange County real estate, including popular areas like Costa Mesa .
So what does this mean for you? For buyers, don’t let the slow start fool you — competition is likely to increase soon, especially for well-priced homes. For sellers, pricing correctly from day one will be more important than ever as buyers pay close attention to value. Overall, the Costa Mesa housing market is setting up for a steadier, more active year ahead, with improving affordability and growing opportunity for those who are prepared .
