News Summary
Orange County’s real estate market is experiencing mixed signals, with 57% of local ZIP codes seeing declines in median prices. The countywide median price remains steady at $1.2 million, but total sales have decreased by 8%. Newport Beach is the most expensive area, while Laguna Woods is the most affordable. Rental trends are rising amid increasing monthly rents. The market faces challenges with slow sales and rising mortgage rates impacting affordability, although some areas showed resilience in sales activity.
Orange County has witnessed a notable shift in its real estate market, with the median selling price experiencing a decrease in 57% of local ZIP codes compared to the previous year. Out of the 83 ZIP codes that registered sales in May, 36 saw a rise in prices while 47 reported declines.
The overall countywide median price for homes has remained steady at $1.2 million over the past 12 months. However, total sales in the area reached 2,154, marking an 8% decrease in activity compared to the same period last year. The current 6.7% mortgage rates have led to a median house payment of about $7,700 when calculated with a 20% down payment, representing a 2% decline year-over-year but a striking 123% increase since 2019.
Among the various ZIP codes, Newport Beach 92661 emerged as the most expensive location with a median price of $6.6 million, while Laguna Woods 92631 was identified as the most affordable, with a median price of $495,000. Irvine 92618 was noted as the most active ZIP code during May, with 75 sales reported.
Trends in Real Estate Sales
Despite the fluctuations in prices, sales activity showed signs of resilience in specific areas. There was an increase in sales in 31 ZIP codes, while the majority, 47, saw a drop. Notably, 5 ZIP codes showed no change in their sales numbers.
Multifamily Property Insights
In the broader multifamily real estate sector, the average per unit sale price for Orange County properties in the first half of 2025 was recorded at $370,595. A Huntington Beach apartment property was sold for an average of $402,373 per unit during the first two quarters of the year.
Rental trends in Orange County are on the rise, with the average monthly rent currently at $2,644, reflecting an increase from $2,624 in the previous quarter and up from $2,597 a year ago. Additionally, The Bascom Group successfully sold a 114-unit senior living apartment complex in Huntington Beach for $35 million, equating to $307,018 per unit, with the complex being 96% occupied at the time of sale.
Market Context and Future Outlook
The Southern California housing market faces challenges, characterized by slow sales and a demand for more affordable options. The rising mortgage rates and elevated home prices have significantly impacted affordability. In March 2025, the median price for a Southern California home was noted at $820,000, slightly down from February but up compared to the prior year. Homes in Los Angeles County similarly experienced annual increases, with the median price reaching $900,000.
Active listings in Southern California have risen to 46,000, recovering from a low of 37,000 listings seen in fall 2023. The rental vacancy rate saw a noticeable increase in 2024 and early 2025. Interestingly, foreclosure rates in the Los Angeles area dropped to 0.2%, remaining lower than the national average of 0.4% as of March 2025.
Overall, the Orange County real estate market is grappling with mixed signals, with some areas thriving while others adapt to evolving economic conditions and buyer behaviors.
Deeper Dive: News & Info About This Topic
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Newport Beach Real Estate Market Experiences Major Sale and Merger
Buchanan Street Partners Appoints Ty Vilhauer as VP of Lending
Significant Real Estate Transactions Boost Senior Living and Retail Markets
Bascom Group Sells Huntington Breeze for $35 Million
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Additional Resources
- Orange County Business Journal: Huntington Beach Apartments Trade for $35M
- Orange County Register: Southern California Home Prices Rise Even as Buying Sputters
- Norada Real Estate: Orange County Housing Market
- Wikipedia: Real Estate
- Google Search: Southern California Housing Market
Author: STAFF HERE COSTA MESA
The Costa Mesa Staff Writer represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, performances at the Pacific Amphitheatre, and community gatherings at The LAB Anti-Mall. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Visit Costa Mesa, plus leading businesses in retail, entertainment, and innovation that shape the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
