Orange County's housing market is off to a strong start in 2025, with an impressive rebound from the slower holiday season. As we transition through the Winter Market (mid-January to mid-March), buyer demand is surging, up a notable 36% in just the past two weeks. With the holidays behind us, many buyers are re-entering the market, and we’re seeing more homes being snapped up quickly, especially those in turnkey condition. This increase in demand is driving the Expected Market Time (the number of days it takes to sell a home) down significantly, from 84 days to just 63 days in just two weeks.
While inventory is slowly increasing, it still remains below pre-pandemic levels, with only 2,821 homes actively listed in Orange County as of early February—still down 31% from the 2017-2019 average. However, as we move into the Spring Market, more homes are expected to be listed, pushing inventory to its peak. The competition is fierce for well-priced properties, with homes that are in great condition often receiving multiple offers and selling close to their asking price.
The luxury market in Orange County, particularly in cities like Costa Mesa, is seeing significant growth. With the threshold for luxury homes now defined as $2.5 million, the inventory of high-end properties has increased by 12%, and demand has surged by 44%. As a result, the Expected Market Time for luxury homes has decreased dramatically, making this sector even more competitive. Homes priced between $2.5 million and $4 million now have an Expected Market Time of just 132 days, a huge improvement from previous months. This trend is expected to continue, especially with fewer homeowners in Orange County moving due to low mortgage rates on their current homes.
As we head into February and March, it's clear that demand will continue to rise, fueling a faster market pace across all price ranges in Orange County. Whether you're looking at luxury properties in Costa Mesa or more modest homes in neighboring areas, the market is heating up, and it’s shaping up to be a busy Spring. Buyers and sellers alike are advised to act quickly as opportunities may not last long! For the full report, please email me at [email protected].
