If you’ve been staring at homes online, refreshing mortgage rates, and wondering whether to jump in (or hold off), you’re not alone. 2025 is shaping up to be a tricky balancing act between cooling buyer frenzy and lingering seller power. Before you place an offer—or park on the sidelines—let’s dig into the numbers, the local Orange County real estate market shifts, and the smart moves you can make.
1. The Big Picture in Orange County
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The average home value in Orange County sits around $1,150,067 (up ~1.2% year-over-year)
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In September 2025, the median price in OC was ~$1.13M, roughly a 4% increase over last year
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Some forecasts expect ~4.6% price gains in 2025 for California broadly—driven by limited supply and steady demand
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The county is seeing more listings than a few quarters ago, which is loosening some of the tighter seller grip.
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Still, sellers often remain in the driver’s seat in many neighborhoods due to residual demand and location-specific advantages.
Bottom line for OC: It’s not a runaway seller market like 2021–22, but it’s not full-blown buyer’s market either. It’s somewhere in the middle—leaning seller in many submarkets.
2. Market Snapshots: Newport Beach, North Tustin, Anaheim Hills
Newport Beach
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Inventory is extremely tight: ~428 active MLS listings currently.
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Earlier in 2025, the city had around 400 active listings with ~80 sales monthly, giving a ~4.5-month supply. That’s better than ultra-competitive times, but still below a “balanced” market (which is around 6 months)
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With limited listings in this luxury/coastal niche, desirable homes (especially with ocean views or prime access) tend to still command strong offers.
North Tustin
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August 2025 median home price: ~$1,616,000, down ~4.9% from last year
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Days on market have stretched: homes take ~59 days vs ~30 days prior year
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This slowdown suggests more breathing room for buyers in neighborhoods slightly off the beach or premium corridors.
Anaheim Hills
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Specific up-to-date median for Anaheim Hills wasn’t found in the sources I reviewed, but the broader Platinum Triangle area (Anaheim / core zones) is seeing ~2.8% year-over-year gains in some segments.
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Given Anaheim Hills’ appeal (views, quieter streets, access to nature, good schools), it's likely behaving somewhere between OC average and premium zones.
3. Key Forces at Play in 2025
🔁 Seller Exhaustion
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Many sellers who “held out” during earlier boom seasons are running out of patience. They may need to sell (job relocation, cash flow, maintenance, life changes).
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That exhaustion offers leverage to buyers—particularly in submarkets where demand is cooling.
📉 Interest Rate Shifts
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Interest rates have been volatile. Some dips are bringing buyers back into the game.
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Some reports anticipate modest easing later in 2025, possibly toward ~6.4% (though that’s no guarantee)
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For buyers: a small change in rate can shift your affordability window significantly—so timing and locking matters.
📦 More Inventory = More Choice
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Compared to the ultra-lean markets of 2021–22, there are more active listings across many Orange County neighborhoods now.
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This helps buyers in two ways: (a) more homes to actually compare, and (b) less desperation, which can open negotiations.
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In Tustin, homes are now staying longer on the market (49 days average) vs tighter turns previously.
4. Should You Buy Now—or Hold Off?
| Decision Factor | Signals Favoring Buying Now | Signals Favoring Waiting / Watching |
|---|---|---|
| Rate risk | If rates dip or you can lock a favorable rate now | If you expect rates to drop further or inflation eases |
| Inventory & selection | More homes available, reducing “must win” bidding wars | If inventory keeps climbing and price pressure grows downward |
| Seller fatigue | Sellers more willing to negotiate on price, upgrades, terms | If market flips and sellers regain pricing power |
| Local trends | In North Tustin/OC average, slower markets = negotiating room | In ultra-tight markets (like certain Newport Beach pockets) you may face stiff competition |
Verdict for OC / your zones:
Yes, there is a window opening for savvy buyers—especially in transitional or slightly off-peak neighborhoods. In premium hotspots like Newport Beach, competition still matters, so you’ll want to be sharp. In North Tustin or Anaheim Hills, the breathing room gives you a bit more negotiation wiggle. Waiting is a higher-risk gamble on future rate drops and price dips—but if you're patient and financially prepared, that’s not a terrible play.
5. Strategic Moves If You Buy Now
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Get preapproved early so your offer is credible.
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Ask for seller credits or contingencies (repairs, appraisal cushion).
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Time your rate lock wisely—don’t procrastinate as rates wiggle.
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Bring inspection & escrow leverage — use pauses, deadlines, or repair allowances.
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Choose quality over frenzied bidding — better to get a “just okay home” at solid terms than overpay recklessly.
6. What to Watch (Signals That the Market Is Shifting)
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Inventory breeches 6+ months in your target neighborhood
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List-to-sale price ratios drop below 98%
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Days on market stretch to 70–90+ in once-hot zones
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Mortgage rates decline meaningfully
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Seller concessions become standard
✨ Final Thought
The question isn’t necessarily “Is it always a good time to buy?” but “Is it a smart time for you?” If your finances are solid, your need for housing is real, and you have room to negotiate — then 2025 offers windows you couldn’t see in prior years of scarcity. But go in armed—with local data, solid underwriting, and a trusted agent (ahem) to guide you through the shifts.
For well-prepared buyers, 2025 is a window of opportunity—especially in neighborhoods like North Tustin or Anaheim Hills where days on market are stretching and prices have softened. Newport Beach remains competitive, but even there, patient buyers with solid financing can strike a deal.
If you’re ready to start house-hunting or just want to talk strategy, let’s connect. I’ll bring the market data (and maybe a latte) so you can make the smartest move for you.
📩 Call/Text Cassie French at 650-245-8911 or CONNECT to start your plan.
