Are Home Prices Still Rising in Orange County?

Written By Greg Hendrickson

A closer look at current home values, buyer demand, and what homeowners should expect moving forward.

If you've owned a home in Orange County for any length of time, you've probably experienced one of the strongest real estate appreciation cycles in history.

But as interest rates have shifted and the market has become more balanced, many homeowners are asking the same question:

Are home prices still rising in Orange County?

The short answer is yes—but not everywhere, and not at the pace we've seen in previous years.

As someone who works daily in Tustin, North Tustin, Orange, Anaheim, Santa Ana, and Irvine, I can tell you that today's market is far more nuanced than the headlines often suggest.

Let's take a look at what's really happening.

1. Home Prices Are Still Increasing—Just More Slowly

The rapid appreciation we saw during 2020 through 2022 has largely normalized.

Today, most Orange County markets are experiencing:

  • Modest year-over-year appreciation

  • More stable pricing

  • Reduced volatility

Rather than seeing double-digit annual gains, many neighborhoods are experiencing healthier, more sustainable growth.

For homeowners, that's generally a positive sign of a stable market.

2. Inventory Remains Relatively Low

One of the biggest reasons home values continue to hold up is simple:

There still aren't enough homes available for sale.

Many homeowners are staying put because:

  • They locked in historically low mortgage rates

  • They have significant equity

  • Moving costs remain high

Limited inventory continues supporting prices throughout much of Orange County.

3. Certain Neighborhoods Are Outperforming Others

Not every city is moving at the same pace.

Areas with strong schools, desirable neighborhoods, and limited inventory continue seeing some of the strongest buyer demand.

Examples include:

  • North Tustin

  • Irvine

  • Anaheim Hills

  • Orange Hills

  • Tustin Ranch

Buyers remain willing to compete for homes in highly sought-after locations.

4. Lifestyle Still Drives Demand

One trend that continues to shape Orange County real estate is the importance of lifestyle.

Buyers are prioritizing:

  • Walkable neighborhoods

  • Good schools

  • Outdoor spaces

  • Community amenities

  • Home office flexibility

This helps explain why areas such as Old Towne Orange, North Tustin, and many Irvine villages continue attracting strong interest.

5. Move-In Ready Homes Are Seeing Premium Pricing

Today's buyers are more selective than they were during the ultra-competitive market years.

Homes that are:

  • Updated

  • Well-maintained

  • Professionally marketed

  • Move-in ready

often command stronger prices and receive faster offers.

Meanwhile, homes requiring significant work may take longer to sell and face more pricing pressure.

6. Interest Rates Have Changed Buyer Behavior

Higher mortgage rates haven't eliminated demand—but they have changed how buyers shop.

Today's buyers:

  • Compare homes more carefully

  • Watch monthly payments closely

  • Negotiate more strategically

As a result, pricing has become increasingly important.

Homes that feel overpriced tend to sit longer than they would have a few years ago.

7. Price Growth Is Hyper-Local

One of the biggest misconceptions about real estate is that all markets move together.

The reality is that appreciation can vary dramatically between neighborhoods.

For example:

  • A view property in Cowan Heights may perform differently than a tract home elsewhere.

  • A historic home near Old Towne Orange may attract a different buyer pool than a newer home in another area.

This is why local market analysis is so important.

8. Sellers Still Have Opportunities

Despite market shifts, Orange County remains one of the most desirable places to live in Southern California.

Strong employment centers, limited land for development, excellent schools, and quality of life continue supporting long-term demand.

For homeowners considering selling, today's market still offers significant opportunities—especially when homes are priced and presented correctly.

9. What Could Influence Prices Moving Forward?

Several factors will likely shape future home values:

  • Mortgage rates

  • Inventory levels

  • Employment trends

  • Consumer confidence

  • Local housing supply

While nobody can predict the future perfectly, Orange County's long-term fundamentals remain strong.

Final Thoughts: Appreciation Hasn't Stopped—It's Evolved

The Orange County housing market isn't experiencing the explosive growth of recent years, but that doesn't mean values are declining.

Instead, we're seeing a market that is becoming more balanced, more localized, and more dependent on property condition, pricing, and neighborhood desirability.

For homeowners in Tustin, North Tustin, Orange, Anaheim, Santa Ana, and Irvine, understanding what's happening at the neighborhood level is far more valuable than focusing solely on national headlines.

If you're curious about how your home's value has changed—or where your local market is headed—I'm always happy to provide honest guidance and a personalized market analysis.

Sources

Greg Hendrickson
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