In August 2025, Orange County’s housing market is shifting gears. After years of runaway growth, the latest data shows a softening in countywide prices even as select pockets like Costa Mesa and Huntington Beach continue to showcase resilience. Median home prices across Orange County slipped by $55,000 compared to the previous month, dropping from $1.23 million to $1.175 million. Yet Costa Mesa recorded a strong year-over-year (YoY) increase of 8.8%, while Southeast Huntington Beach (especially the sought-after 92649 zip code) saw steady appreciation of nearly 5%.
This mixed bag of trends creates a fascinating landscape for buyers, sellers, and investors. With homes staying on the market longer—averaging 91 days, the longest since 2014—and over 60% of properties selling below list price, the leverage is shifting toward buyers. At the same time, historically low mortgage rates are pulling more buyers back into the game, especially for turnkey homes in prime neighborhoods.
Let’s break down what’s happening across Orange County, with a closer lens on Costa Mesa and Huntington Beach, and explore what these changes mean for you.
Orange County Housing Market Overview
Median Home Prices Sliding?
Across the county, median home prices have softened—dipping from approximately $1.23 million to $1.175 million in August 2025. That’s a $55,000 decline in just one month. This suggests sellers are no longer enjoying the runaway bidding wars of past years, and buyers are exercising more caution.
While this correction may unsettle sellers, it’s part of a healthy market cycle. Price adjustments often reflect seasonal slowdowns combined with increased inventory. Importantly, this dip doesn’t mean demand has vanished—it means buyers now have more breathing room to evaluate their options.
Buyer-Friendly Trends Emerging
The Orange County housing market is leaning toward buyers. A modest rise in inventory has given shoppers more choices, while demand has cooled slightly compared to the frenzy of 2022–2023. Sellers are still achieving solid numbers when their properties are well-priced and well-presented, but buyers are no longer forced into extreme bidding situations.
For buyers, this is a golden opportunity to negotiate upgrades, price reductions, or closing cost credits, particularly on homes that need work. For sellers, the message is clear: pricing and presentation matter more than ever.
Costa Mesa Market Spotlight
Year-Over-Year Price Growth
Costa Mesa continues to surprise analysts. In July 2025, the city saw an impressive 8.8% increase in median home prices, bringing the average cost to around $1.6 million. This resilience highlights Costa Mesa’s ongoing desirability, fueled by its central location, vibrant lifestyle, and proximity to both coastal amenities and employment hubs.
What’s driving this growth?
- A surge of families relocating for top-rated schools.
- Investors attracted to the city’s diverse housing stock.
- Continued demand for remodeled homes near Eastside and Mesa Verde.
Slowdown in Selling Speed
But price appreciation isn’t the full story. Homes in Costa Mesa are taking longer to sell, averaging 61 days on market in July 2025 compared to just 32 days one year earlier. This doubling in market time suggests that while buyers are willing to pay a premium for the right home, they’re taking their time to shop around.
For sellers, this means patience and strategic marketing are essential. Homes that show well and are priced right are still moving quickly, but overpricing can easily push a listing into extended market time.
Huntington Beach Market Insights (92649)
Steady Appreciation Continues
Huntington Beach, particularly the Southeast region and zip code 92649, remains a beacon of steady appreciation. In July 2025, home prices rose 4.9% YoY, aligning with the citywide median of about $1.3 million. Within 92649, the average home value is even stronger—around $1.35 million, up 3.4%.
The draw? Lifestyle. Residents here enjoy easy coastal access, harbor proximity, and a tight-knit community vibe. These factors continue to make Huntington Beach one of the most desirable locations in Orange County, even amid broader market cooling.
Citywide Median Strength
The citywide median price of $1.3 million reflects ongoing confidence in Huntington Beach real estate. While affordability remains a challenge, steady appreciation combined with slower selling times creates a balanced playing field for both buyers and sellers.
Market Dynamics: Buyers vs. Sellers
More Price Reductions by Sellers
Over 60% of Orange County homes have recently sold below asking price. This indicates a shift from a seller-controlled environment to a balanced market. Sellers who cling to last year’s pricing expectations are finding themselves forced into price reductions.
Longest Selling Time Since 2014
The Expected Market Time (EMT) has reached 91 days—the longest seen this late in summer since 2014. Buyers now have more leverage, while sellers must focus on differentiation.
Interest Rates Lowering Buyer Resistance
Mortgage rates are at their lowest levels of 2025, encouraging hesitant buyers to re-enter the market. As affordability improves slightly, well-maintained and correctly priced homes are still generating multiple offers.
What This Means for Buyers
- Increased negotiating power.
- Opportunity to secure homes below asking price.
- Ideal time to buy properties that need cosmetic updates.
- Competitive edge if pre-approved and ready to act.
What This Means for Sellers
- Overpricing is risky; correct pricing is critical.
- Homes in move-in–ready condition still attract strong demand.
- Staging, professional photography, and targeted marketing can offset longer EMTs.
- Sellers who adjust quickly to market realities outperform the competition.
Investor Opportunities
For investors, the market presents a mix of stability and opportunity. Costa Mesa’s YoY gains indicate strong long-term appreciation, while Huntington Beach’s steady growth offers reliable returns. Extended selling times may allow investors to negotiate favorable terms on fix-and-hold or fix-and-flip properties.
Strategic Recommendations
For Buyers
- Get fully pre-approved before shopping.
- Act quickly on move-in–ready homes.
- Negotiate aggressively on overpriced or dated listings.
For Sellers
- Price competitively from day one.
- Stage your home to maximize buyer appeal.
- Be flexible with concessions if needed.
For Investors
- Focus on high-demand pockets like Mesa Verde Costa Mesa or Huntington Harbour.
- Consider multi-family properties as rental demand remains strong.
- Target homes with cosmetic fix potential for best ROI.
FAQs on the Orange County Market
Q1: Is Orange County experiencing a housing market crash?
No. Prices have softened slightly, but this is a natural correction. Demand remains strong, particularly in prime areas like Costa Mesa and Huntington Beach.
Q2: Why are homes taking longer to sell?
With more inventory and cautious buyers, homes are averaging 91 days on market. Overpricing is the leading cause of extended timelines.
Q3: Are mortgage rates helping buyers?
Yes. Rates are at their lowest of 2025, making monthly payments more manageable and boosting buyer confidence.
Q4: Is Costa Mesa still a good place to buy?
Absolutely. With 8.8% YoY price growth and strong lifestyle amenities, Costa Mesa continues to perform well for both homeowners and investors.
Q5: What about Huntington Beach?
Southeast Huntington Beach, particularly 92649, remains highly desirable with steady appreciation, making it a safe long-term investment.
Q6: How can sellers compete in this market?
By focusing on correct pricing, home condition, and marketing strategy. Sellers who adapt to buyer expectations see faster and stronger results.
Conclusion
The Orange County housing market in August 2025 reflects a new balance. Prices have adjusted downward across the county, yet Costa Mesa and Huntington Beach continue to showcase resilience. With homes taking longer to sell and buyers gaining more negotiating power, strategy is more important than ever.
For buyers, this is a window of opportunity. For sellers, it’s a time to get serious about presentation and pricing. And for investors, it’s a season of selective, strategic moves.
Whether you’re buying, selling, or investing, the key takeaway is clear: Orange County real estate remains strong, but it’s no longer on autopilot. Smart decisions today can yield big returns tomorrow.
Posted by Matt Kanoudi on
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