If you’ve been sitting on the sidelines waiting for the right moment to buy a home in Costa Mesa or anywhere in Orange County, your window of opportunity is officially open — and it might not stay that way for long.
According to the latest Orange County Housing Report (October 27, 2025) by Steven Thomas of Reports on Housing, current conditions are lining up in favor of buyers in a way we haven’t seen in over a year.
Mortgage Rates Hit a 12-Month Low
Mortgage rates have dipped below 6.5%, holding steady for more than 50 days — the longest stretch of low rates since 2023. This drop in rates translates to increased affordability and purchasing power. For example, a buyer aiming for a $7,000 monthly payment can now afford a $1.4 million home instead of $1.3 million — nearly a $100,000 boost in buying power.
With the Federal Reserve signaling a slower economy ahead, rates are projected to remain at these lower levels into 2026, giving buyers a rare chance to secure better financing before competition heats up this spring.
More Homes, More Choices
Inventory is also working in buyers’ favor. Orange County’s active listings are up 18% year-over-year, with 4,288 homes currently on the market — the most choices buyers have had since 2019.
Sellers are also showing signs of motivation: more are listing their homes (10% more than last year) and becoming increasingly open to negotiation. Many homes have been sitting on the market for months, prompting price adjustments and incentives like seller-paid rate buydowns or closing cost credits.
Why This Is the Ideal Window
Just like Disneyland’s “magic hour” before the crowds arrive, the local housing market has its own sweet spot — and it’s right now. Between now and early 2026, lower rates, motivated sellers, and higher inventory make this the best time for buyers to act before the market accelerates into the spring selling season.
Once demand surges in early 2026, buyers will likely face more competition, faster market times, and fewer concessions.
Luxury Market Snapshot
In the luxury segment ($2.5 million and above), the market has improved slightly, with average days on market dropping from 194 to 183. Homes priced above $6 million are moving faster than they have in months.
Even at the high end, sellers are increasingly realistic — offering a prime opportunity for buyers looking in Eastside Costa Mesa, Newport Heights, or other exclusive enclaves of Orange County.
Quick Market Highlights
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Active Inventory: 4,288 homes (up 18% year-over-year)
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Buyer Demand: 1,546 pending sales (steady compared to last year)
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Expected Market Time: 83 days — fastest pace since April
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Luxury Market: Improving, with more movement in the $2.5M–$4M+ range
Final Takeaway
If you’ve been waiting for the “perfect time” to buy, this fall and winter may be your moment. Once rates rise or competition returns in spring, today’s negotiating leverage could vanish overnight.
Full Report Credit:
All data sourced from “Window of Opportunity” – Orange County Housing Report, October 27, 2025 by Steven Thomas, Reports on Housing.
Want the full report?
Contact me directly to receive a complimentary copy along with my insights on how these trends specifically impact Costa Mesa and Orange County’s coastal real estate market.
