Costa Mesa Real Estate Update: What 2026 Could Look Like for Buyers and Sellers

As we say goodbye to 2025 and welcome a brand-new year, many people are asking the same question: What does 2026 mean for the Orange County housing market? The latest housing report takes a look back at 2025 and gives us helpful clues about what may be ahead. Here in Costa Mesa, the story of the past few years has been low inventory, higher mortgage rates, and buyers moving more slowly — but change may finally be coming.

In 2025, the number of homes for sale in Orange County grew more than it has in years, peaking in the summer before slowing down for the holidays. Even with more homes available, inventory is still lower than it was before the pandemic. Many homeowners have stayed put because they locked in very low mortgage rates years ago, but that trend has slowly been easing. More sellers are becoming willing to move, which gives buyers more choices — something we haven’t seen much of lately.

Buyer demand, however, stayed fairly quiet throughout most of 2025. Higher mortgage rates made homes harder to afford, so many buyers stayed on the sidelines. The good news is that rates finally began to improve toward the end of the year, and that sets the stage for a stronger Winter and Spring Market in 2026. If rates stay near the low 6% range — or dip even lower — buyer activity could increase, especially for entry-level homes in Costa Mesa and nearby Orange County cities.

So what does this mean for you? For buyers, 2026 may bring more opportunities, more listings, and a better balance between supply and demand. For sellers, pricing your home correctly will be more important than ever as competition increases. Overall, the Costa Mesa real estate market is expected to move toward a healthier, more balanced pace in 2026 — not too fast, not too slow, but steady and full of opportunity for well-prepared buyers and sellers