A local market breakdown for buyers, sellers, and investors watching the Orange County real estate landscape shift in real time.
As we head into summer 2025, the Orange County housing market continues to show its resilience—and complexity. For homeowners thinking of selling, or buyers waiting for the “right” moment, understanding where the market is now and where it’s going is key. Two of the most watched markets in our area—Tustin and Irvine—are moving in different rhythms, each with their own opportunities and challenges.
Whether you're a first-time buyer, a seasoned investor, or a homeowner keeping tabs on your equity, this breakdown will help you get a clearer sense of what’s happening in Tustin, Irvine, and surrounding cities like North Tustin, Orange, Santa Ana, and Anaheim.
1. Tustin Sees Steady Growth – Especially in the Foothills
Tustin has maintained its appeal as a more accessible alternative to Irvine, especially in North Tustin, where larger lots, quiet neighborhoods, and custom homes offer real value. Home prices in Tustin rose about 2.3% year-over-year, with median home values hovering near $1.05M.
What’s keeping Tustin competitive:
- Great schools and family-friendly communities.
- Easier freeway access and central OC location.
- Less new construction = tighter inventory.
2. Irvine Inventory Bounces Back, But at a Price
Irvine remains a hot market, particularly for new construction and luxury buyers, but inventory levels have climbed since early 2024. That’s putting a moderating effect on prices, though values are still well above county averages. The current median home price in Irvine is $1.38M, a slight dip from Q1 highs.
Irvine’s unique drivers:
- Master-planned communities with strong HOA appeal.
- Top-rated schools and proximity to tech and business hubs.
- High investor interest, especially from international buyers.
3. Inventory Is Up… But So Are Interest Rates
Buyers have more options now than they did a year ago, with inventory in both Tustin and Irvine up 12–15% compared to spring 2024. That’s good news for buyers who were previously stuck in bidding wars.
However, interest rates are still sitting around 6.8%, which means affordability remains a challenge—especially for first-time buyers. Many sellers are holding onto their low-rate homes, keeping inventory from flooding the market.
4. Santa Ana and Anaheim Offer Hidden Gems
If you’re priced out of Tustin or Irvine, look to Santa Ana and Anaheim, where you’ll find more affordable single-family homes and a growing number of renovated mid-century properties. Median prices here range between $790K–$880K, depending on neighborhood and condition.
These cities also offer strong rental opportunities, making them attractive for first-time investors and flippers.
5. Sellers: It’s Still a Good Time to List (With the Right Strategy)
Despite some softening in luxury price points, homes in the $850K–$1.2M range—especially in Tustin and North Tustin—are still moving fast if priced and presented correctly. Staged homes with updated kitchens and clean curb appeal are seeing multiple offers within the first two weeks.
Tips for sellers:
- Don’t overprice based on last year’s comps.
- Prioritize pre-listing improvements and presentation.
- Understand buyer psychology in a higher-rate market.
6. Buyers: Be Ready to Act, But Stay Patient
This is still a competitive market, but it’s not the frenzy of 2021–2022. Smart buyers are getting closing cost credits, price reductions, and even rate buydowns. The key is to have your financing lined up and work with an agent who knows how to negotiate.
Watch for:
- Motivated sellers on homes sitting 30+ days.
- Builder incentives in Irvine new construction.
- Early summer listings from move-up sellers in Tustin.
7. Investors: Watch Irvine Rents, Target Anaheim Returns
While Irvine remains strong for appreciation, rent growth has leveled off. Some neighborhoods are hitting a cap on what tenants are willing to pay. Meanwhile, Anaheim and Santa Ana continue to offer strong rent-to-price ratios, especially for duplexes and ADU-ready properties.
Multifamily interest is up in areas with zoning flexibility—worth watching if you're thinking long term.
Final Thoughts: Keep Your Eye on Micro-Markets
The May 2025 data shows us what we already knew: real estate is hyper-local. While overall trends point to stability with some cooling at the top, each neighborhood is moving at its own pace. Whether you're buying, selling, or investing, understanding your specific market—and working with a local expert who lives it every day—is the key to making confident moves.
If you’re curious what your home is worth or want help deciding if it’s the right time to buy or sell, let’s connect. I’m always here to chat real estate over coffee or take a quick walk-through of your home.
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