The Orange County luxury housing market is on the rise! With new forecasts by Lawrence Yun, chief economist at the National Association of REALTORS® (NAR), the Orange County luxury real estate landscape promises some exciting trends.

For buyers and investors in Newport Beach, Newport Coast, and throughout Orange County, luxury real estate may see a substantial boost. Yun projects a 9% increase in home sales in 2025 and a 13% surge in 2026, along with mortgage rates stabilizing around 6%. This forecast spells good news for anyone considering investing in high-end properties in the Orange County real estate market!

While 2023 and 2024 have been challenging years, with inventory shortages and fluctuating rates, the outlook for Orange County luxury real estate remains optimistic. Yun believes the worst may be behind us, with more luxury estates coming onto the market and mortgage rates remaining within a manageable range. This trend appeals to a broad range of buyer personas, from local and national high-net-worth individuals to international clients looking to own a piece of California’s exclusive coastal lifestyle.

Employment growth also plays a significant role in this promising forecast. Since 2020, record employment gains have created a steady foundation for housing demand, with job stability supporting the luxury lifestyle many seek in Orange County. When more people work, more people can afford luxury estates, further fueling demand in prime areas like Newport Beach and Newport Coast. The high-end lifestyle, paired with access to scenic coastlines, award-winning dining, and upscale amenities, makes Orange County real estate a top choice for those pursuing an exclusive lifestyle.

Yun also addressed the key concern of mortgage rates, noting that while rates may not drop to 4% as they did in past years, a 6% average seems likely. This stability could encourage buyers to consider luxury homes without waiting for uncertain shifts in rate levels. The Federal Reserve’s planned rate cuts, expected in 2025, may provide additional relief and boost confidence in the luxury real estate market.

And for those considering an investment, home values are predicted to rise. Yun anticipates a 2% increase in median home prices across the Orange County housing market in both 2025 and 2026. While modest, this growth signals stability and resilience—two appealing factors for high-end property investors.

Whether you’re local, national, or international, the Orange County luxury real estate market is brimming with potential. Newport Beach, Newport Coast, Laguna Beach, and beyond are calling — and now might be the perfect time to explore high-end properties along California’s iconic coast!

Ready to start your journey? Connect with our dedicated real estate specialists for tailored guidance at SurterreProperties.com. Don’t miss the chance to make Orange County’s luxury lifestyle your reality. You can also explore our exclusive listings online now!