News Summary
The Orange County housing market is experiencing notable fluctuations, with a decline in median selling prices across over half of the local ZIP codes. May sales dropped by 8%, with the most expensive area being Newport Beach at $6.6 million and the cheapest in Laguna Woods at $495,000. Despite a stable countywide median price of $1.2 million, high mortgage rates have contributed to an estimated monthly housing payment of around $7,700. Broader economic factors continue to impact buyer and seller confidence, with Southern California witnessing some of the slowest selling months in two decades.
Orange County – In May, the housing market in Orange County showed signs of fluctuation with the median selling price experiencing declines in over half of the local ZIP codes as sales continued to drop amid high mortgage rates. According to the latest data, 57% of the 83 ZIP codes with sales reported lower prices compared to the previous year.
The most notable sale occurred in Newport Beach (ZIP code 92661), where the median price reached a staggering $6.6 million, making it the most expensive area in the county with five or more sales. In stark contrast, Laguna Woods (ZIP code 92631) was identified as the cheapest, where homes were priced at an average of $495,000.
May’s sales figures indicated a decline in home transactions, with 2,154 total sales reported, reflecting an 8% decrease compared to the same month last year. While sales increased in 31 ZIP codes, 47 ZIP codes witnessed a decrease, with five remaining unchanged. The busiest area for transactions was Irvine (ZIP code 92618), which recorded 75 homes sold.
Despite these fluctuations, the overall countywide median price in Orange County remained stable at $1.2 million, which has not changed significantly over the past year. However, current mortgage rates averaging 6.7% result in an estimated monthly housing payment of approximately $7,700 for a median-priced home. This amount reflects a 2% decrease from the previous year but represents a significant 123% increase since 2019.
The downward trend in sales has been attributed to broader challenges facing the Southern California housing market. Recent figures indicated that in March, only 13,883 homes were sold across Southern California, marking it as one of the slowest sales months in two decades. Moreover, the first quarter of 2025 saw just over 37,500 transactions, making it the fourth-slowest in that’s period in the past 20 years.
Nationwide, the housing market’s struggles reflect dismal trends, particularly this year. Despite a slight improvement in listing shortages and a dip in mortgage rates, confidence among buyers and sellers remains low, largely due to economic factors such as tariffs and an ongoing trade war. In March, the median price for a home in Southern California was reported at $820,000, slightly lower than February but $35,000 higher than the previous year’s figure.
The region has also seen varying degrees of home price increases. For instance, Los Angeles County’s median home price rose by 5.9% to $900,000, whereas Orange County observed a more modest 4.3% increase. Other areas, such as Riverside County, displayed modest annual gains in prices ranging from 1% to nearly 6% in places like Los Angeles County.
For those looking to purchase a home in Southern California, the cost has greatly increased over recent years. The required annual income to buy a typical home in the region has nearly doubled over the last five years, now sitting at approximately $213,600. Additionally, a typical mortgage payment for a median-priced home now totals around $4,211 for buyers putting down 20%, reflecting an increase of $180 since March 2024.
The inventory of listings is showing slight improvements compared to last year, with approximately 46,000 active listings reported in March, up from a low of 37,000 the previous fall. The multifamily housing sector in Orange County is also experiencing change, with average sale prices reaching $370,595 per unit in the first half of 2025. Rentals continue to rise in the area, presenting additional challenges for both homeowners and renters in the Los Angeles-Long Beach-Anaheim region amidst ongoing economic uncertainties and high operating costs.
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Additional Resources
- Orange County Register
- Wikipedia: Orange County, California
- Daily Progress
- Google Search: Southern California housing market
- Orange County Business Journal
- Google Scholar: Southern California housing market trends
- U.S. News & World Report
- Encyclopedia Britannica: Real Estate
- FOX LA
- Google News: Orange County real estate
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, 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 Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
