From Corona to San Clemente: Navigating the Southern California Real Estate Market in Q2 2025

Disclaimer: The information provided in this blog is based on publicly available real estate data and trends as of Q2 2025, sourced from reputable platforms such as Redfin, Rocket Mortgage, and other industry reports. While every effort has been made to ensure accuracy, market conditions can change rapidly. For the most up-to-date and personalized information, we recommend consulting with a local real estate professional or visiting the official sources referenced in this post.

The real estate landscape in Southern California is undergoing a noticeable shift in 2025. After the intense activity of the pandemic boom, we’re now in a phase that reflects a more tempered, balanced market. As we enter the second quarter of 2025, we're seeing a market that requires a more strategic approach from both buyers and sellers.

Nationally, inventory levels surged by 30.6% year-over-year as of April 2025, continuing an 18-month streak of increasing supply. Despite this rise, buyer demand hasn’t kept pace, with mortgage applications dropping 40% compared to the same period in 2019. On top of that, 30-year fixed mortgage rates have averaged 6.7%. These factors combine to create a market where, while there are more homes to choose from, the pace of transactions is slowing.

Now, let's take a closer look at how these trends are playing out in the cities I serve: Corona, Costa Mesa, Dana Point, Irvine, Laguna Beach, Laguna Niguel, Mission Viejo, Newport Beach, and San Clemente.

Increasing Inventory, But Cautious Buyers

The rise in inventory across the region is clear, giving buyers more options. However, despite the increased supply, many buyers are still holding back, primarily due to the elevated mortgage rates and ongoing economic uncertainty.

Here’s a breakdown of the inventory growth across the cities I serve:

• Corona: Up 10%

• Costa Mesa: Up 12%

• Dana Point: Up 6%

• Irvine: Up 8%

• Laguna Beach: Up 3.5%

• Laguna Niguel: Up 5%

• Mission Viejo: Up 9%

• Newport Beach: Up 4.5%

• San Clemente: Up 7%

Though there are more homes on the market, many buyers are taking a measured approach, which is helping to slow down the typical frenzy we saw in past years.

Price Trends: High Demand in Certain Areas, but Affordable Alternatives Available

While some areas remain highly competitive, others are seeing more reasonable pricing. As buyers look for options that offer more value, the gap between high-demand locations and more affordable ones continues to grow.

Here's how the average home prices stand as of Q2 2025:

• Corona: $760,000 (up 2% YoY)

• Costa Mesa: $1.6 million (up 16% YoY)

• Dana Point: $2.1 million (up 6.5% YoY)

• Irvine: $1.6 million (down 6.1% YoY)

• Laguna Beach: $3.0 million (up 3.4% YoY)

• Laguna Niguel: $1.4 million (up 1.6% YoY)

• Mission Viejo: $1.2 million (up 6.6% YoY)

• Newport Beach: $3.8 million (up 8.6% YoY)

• San Clemente: $1.4 million (up 4.2% YoY)

As expected, coastal areas like Newport Beach and Laguna Beach continue to have high median prices, but Corona and San Clemente offer more affordable options that still provide buyers with great value.

Homes Taking Longer to Sell: Shifting Market Dynamics

Gone are the days when homes would sell in a matter of days—today, homes are taking longer to find the right buyer. The days on market have increased, reflecting a market that requires patience and careful strategy for sellers.

Here’s the current average time it takes for homes to sell in the cities I serve:

• Corona: 33 days

• Costa Mesa: 35 days

• Dana Point: 34 days

• Irvine: 40 days

• Laguna Beach: 44 days

• Laguna Niguel: 36 days

• Mission Viejo: 29 days

• Newport Beach: 42 days

• San Clemente: 38 days

Luxury homes and properties that are priced too high are taking even longer, often remaining on the market for 30-90 days before any serious offers are made. Sellers must be prepared to make price adjustments, typically in the range of $10,000 to $15,000, to stay competitive.

What Buyers Are Looking For

Today’s buyers are more discerning than ever before. It’s no longer just about finding a home—it’s about finding the right lifestyle. The most sought-after features are those that align with a modern, energy-efficient, and turnkey lifestyle.

Key features buyers are looking for include:

• Updated kitchens and bathrooms

• Energy-efficient systems and solar panels

• Smart home technology

• Fresh, neutral paint and new flooring

These are no longer “luxuries”—they’ve become essential for buyers who are willing to wait for the right home to come along.

Tips for Sellers in Today’s Market

For sellers, the market in Q2 2025 is a reminder that you can no longer expect to list your home at an inflated price without the necessary preparation. The days of easy sales are over—today’s buyers have more options and more leverage.

Here’s how to navigate this shift:

1. Price Your Home Right: Pricing is critical. Overpriced homes are sitting on the market longer and often require price cuts to attract buyers.

2. Make the Necessary Updates: Homes that need work, like an old HVAC system or dated flooring, may struggle to attract interest. A few key updates can make a significant difference in the speed of sale.

3. Flexibility is Key: Buyers are seeking deals, so don’t be afraid to consider price reductions, concessions, or repairs. Being flexible on closing costs, rate buy-downs, or repair credits can make a deal more appealing.

Staging, professional photography, and making your home “move-in ready” will go a long way toward attracting the right buyers.

Looking Ahead: A Balanced Market

As we move through Q2 2025, the Southern California real estate market is continuing its transition. While it’s not as volatile as the highs of 2021, it’s also not the frozen market that we saw in parts of 2023. The market is now finding its balance, which requires strategic thinking from both buyers and sellers.

For buyers, it’s crucial to be strategic—know your budget, carefully evaluate homes, and be prepared to negotiate. Sellers must be prepared—price your home accurately, invest in necessary improvements, and be willing to work with a more selective group of buyers.

Southern California’s real estate market is in a transition, but one that rewards thoughtful decisions and careful planning.

If you’re ready to make your next move in Corona, Costa Mesa, Dana Point, Irvine, Laguna Beach, Laguna Niguel, Mission Viejo, Newport Beach, San Clemente, or surrounding areas, I’m here to help. Together, we’ll create a strategy that works for you in this evolving market.

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