Orange County Condominium Market Overview: Trends and Insights

The Orange County condominium market has been experiencing notable shifts this fall, with median prices showing a slight decline while per-square-foot valuations for mid-rise and high-rise buildings continue to rise. This dynamic paints a complex picture for potential buyers and investors in the region’s real estate landscape.

Price and Sales Trends

According to Polaris Pacific’s market report for October 2025, the median condominium price in Orange County dipped by 2.3% year-over-year, settling at $850,000 for the period ending September 30. Despite the overall drop in median prices, many high-rise buildings have reported significant increases in per-square-foot prices. Low-rise buildings, which comprise structures of four stories or less, saw a minimal increase of 1.1%, reaching $767 per square foot. Mid-rise buildings experienced a larger jump, with per-square-foot prices rising by 4.9% to $890. Meanwhile, high-rise buildings now command an impressive $1,004 per square foot, reflecting a surge of 5.5%.

Interestingly, the overall per-square-foot valuation for condominiums across the county has seen a decrease of 1.9%, dropping to $676. This contrast between median prices and per-square-foot rates illustrates a complicated market where certain segments are thriving despite a general slowdown.

District Insights

Examining the performance across various districts reveals significant disparities. District 4, which encompasses areas like Newport Beach, Tustin, and Irvine, maintains the highest median condominium price at $1.2 million. In contrast, District 2, which includes Orange, Villa Park, Santa Ana, and Anaheim, recorded the lowest median price at $600,000. Furthermore, District 3, comprised of Seal Beach, Huntington Beach, and Costa Mesa, experienced the largest sales increase, reflecting a robust growth rate of 18.4%.

These variations can help potential buyers focus on areas aligned with their budget while investors may find more robust opportunities in regions showing heightened sales activity.

Sales Activity Update

Overall sales activity in Orange County declined by 3.3%, with only 1,018 transactions recorded in the three months leading up to September 30. However, October appears more promising, with existing condominium sales rising by 5.4% to 588 units from the previous year. Transaction volumes have also increased significantly, with September 2024 seeing $369 million in deals—up 27.9% from the previous year. Additionally, the market reported an impressive 847 pending condo resales, surpassing the 2015-2025 average of 654.

This uptick in activity points to a potential stabilization phase in the market, and as inventory remains constrained, this dynamic may serve to buoy prices in certain segments.

Inventory and Market Dynamics

The inventory situation in Orange County remains tight, with the Months of Remaining Inventory measured at 2.8 months. Current listings are averaging 40 days on the market, which is longer than the 30-day average from 2018-2025. However, it is still below the 60-day level that indicates a balanced market. The longer days on the market suggest that buyers may be taking more time to make decisions, a sign of the cautious sentiment prevailing amid fluctuating prices.

The average days on the market have increased from just 26 days in 2024, further indicating the shifts in buyer activity and preferences.

Buyer Composition Trends

The composition of buyers has shifted in response to changing market dynamics. All-cash transactions account for about 33.3% of sales, a decrease from 35.3% the year prior. On the other hand, investor purchases have also declined to 31.9%, down from 34.5% last year, indicating a more conservative approach to real estate investment. This aligns with the overall moderation seen in investor activity and reflects broader trends in financial markets, where investors might be reassessing risk levels.

New construction is also an essential aspect of the market, adding to the existing inventory. In 2024 alone, 2,901 apartments and 2,385 condominiums and townhomes were delivered. Currently, 786 new condominiums and townhomes are underway in Orange County, alongside a substantial 6,808 apartment units, showing that the demand for housing—both for purchase and rent—remains robust.

Developer Insights and Future Outlook

In 2024 and 2025, developers sold out 1,813 units across 19 different properties, with Lennar Homes being a prominent player in the market. Their completed projects include a variety of condominium developments, such as Lexington at Central Park West, Portico at Rancho Mission Viejo, and Oasis at Rienda. Other developers like Melia Homes and Tri Pointe Homes are also active, contributing to the evolving landscape of Orange County’s real estate.

As the market transitions, it appears that premium properties in high-rise and mid-rise formats are attracting buyers willing to pay top dollar per square foot. Conversely, while overall transaction volumes and investor engagement might be moderating, the pipeline of new apartment construction suggests that rentals may play an increasingly significant role in the county’s housing strategies. This scenario could keep upward pressure on condominium prices despite the prevailing inventory challenges.

In summary, the Orange County condominium market reflects a complex interplay of rising per-square-foot prices amidst declining median figures, signifying a phase of adaptation and resilience. As inventory remains tight and demand persists in specific sectors, potential buyers and investors must navigate this evolving landscape intelligently.