August 3, 2026
ISSUE #03A TALE OF TWO MARKETS
Orange County's housing market tells two stories — rising inventory meets steady demand. How Fullerton Hills neighborhoods are navigating the divergence.
The Orange County housing market is telling two distinct stories right now. On one side, rising inventory and elevated mortgage rates are giving buyers more choices and more negotiating power than they have had in years. On the other, steady demand in well-positioned neighborhoods — particularly in North Fullerton's hillside communities — continues to reward sellers who price strategically and present their homes well.
This biweekly intelligence report breaks down the latest data across Orange County, Fullerton, Placentia, Brea, and Yorba Linda, with a focused look at the luxury segment. Whether you are buying, selling, or simply watching the market, understanding which side of the tale applies to your neighborhood is the key to making informed decisions.
The Big Picture
Orange County's active inventory has risen to its highest level since July 2025, with 5,046 homes available — a 1% increase from two weeks ago. This upward trend in supply has been building for months, giving buyers a broader selection than at any point in the last year. Simultaneously, mortgage rates have climbed to 6.82%, the highest of 2026, adding pressure on monthly payments and tempering the urgency that defined the post-pandemic market.
Yet demand has not collapsed. Pending sales sit at 1,494, still historically low for mid-July (the lowest since 2004), but the market is finding equilibrium. Homes in desirable, well-priced segments continue to attract offers. In Fullerton's three hillside neighborhoods — Raymond Hills, Sunny Hills, and Golden Hills — strategic pricing and prime location still yield competitive outcomes, even as the broader county tilts slightly toward buyers.
The key divergence is between entry-level and premium segments. Below $1.25 million, inventory is tighter and demand steadier. Above that threshold — in the luxury market — supply has swelled to 1,055 homes, and market time has stretched to 181 days. Luxury sellers must be prepared for a longer timeline and more strategic positioning.
The takeaway: This is not a market of good news or bad news — it is a market of segments. Understanding where your property or target neighborhood sits on this spectrum is the difference between a successful transaction and a frustrating one.
How Our Cities Compare
Each city in North Orange County tells a different chapter of the same market story
| City | Active Inventory | Pending Sales | Market Time | Median Price | YoY Change |
|---|---|---|---|---|---|
| Fullerton | 149 | 57 | 78 days | $1,085,000 | +0.9% |
| Brea | 48 | 24 | 60 days | $1,190,000 | +3.5% |
| Placentia | 57 | 25 | 68 days | $1,180,000 | Stable |
| Yorba Linda | 152 | 53 | 86 days | $1,324,500 | +6.1% |
Data source: ReportsOnHousing.com | Updated August 3, 2026
Fullerton continues to punch above its weight. With 149 active homes and a 78-day market time, the city is moving faster than both Yorba Linda (86 days) and the county average. Prices have held steady at $1,085,000, up 0.9% year over year, and well-priced listings in the hillside neighborhoods frequently attract multiple offers within the first two weeks.
Brea remains the most balanced market in the region. At just 48 active listings and a 60-day market time, sellers who price accurately can expect a clean, timely transaction. The 3.5% year-over-year price appreciation underscores Brea's stability.
Placentia has recovered from a sharp spike in market time two weeks ago (160 days) and is back to 68 days — a dramatic correction that shows how quickly local conditions can shift.
Yorba Linda is the inventory story. With 152 homes on the market, up 67% from a year ago, buyers have unprecedented selection and negotiating leverage. The median price has grown 6.1% to $1,324,500, but the 86-day market time signals that patience is required on the seller side.
Luxury Market Intelligence
Homes priced at $1.25 million and above
The luxury segment ($1.25M+) continues to operate on a different clock. With 1,055 active homes and an expected market time of 181 days, sellers in this bracket face a fundamentally different market than those below the threshold. Demand is slowly improving — pending sales rose 7% to 175 — but at the current pace, a seller listing today would not expect to go pending until early 2027.
The median sale price in the luxury segment is $1.875M, and homes are selling at 97.2% of list price. This means luxury buyers have room to negotiate, while sellers need to be realistic about timeline and pricing strategy.
For luxury homeowners in Raymond Hills and Sunny Hills: View properties and custom estates still command a premium, but preparation and professional staging are no longer optional — they are essential. The buyers who can afford at this level are discerning and will wait for the right property.
Fullerton Hills Neighborhood Pulse
How our three hillside communities are performing in the current market
Raymond Hills
View estates and custom lots continue to perform well. Owners of properties with unobstructed city-light or mountain views should be aware their equity is stronger than automated valuations suggest.
Sunny Hills
Move-in-ready properties near Sunny Hills High School continue to attract multiple offers within two weeks. The school district premium remains one of the strongest value drivers in North Orange County.
Golden Hills
Proximity to the Fullerton Loop and Hiltscher Park continues to attract active-lifestyle buyers. With just 11 days on market, Golden Hills character homes near trail access move faster than any other segment.
Data source: CRMLS | Neighborhood-level estimates as of July 2026
What This Means for You
For Sellers
- → The first two weeks on market are still critical. Price accurately from day one and you will capture strong interest.
- → Luxury sellers should plan for a longer timeline. Professional staging and targeted marketing are no longer optional.
- → In Sunny Hills, the school premium is holding strong. Leverage it in your pricing strategy.
- → With rates at 6.82%, buyers are more rate-sensitive. Offering a temporary rate buydown can differentiate your listing.
For Buyers
- → In Yorba Linda, the 67% inventory surge gives you leverage you have not had in years. Take your time negotiating.
- → In Fullerton, the 78-day market time means you have room to evaluate. Do not feel pressured to rush your decision.
- → Luxury buyers: with 181 days of inventory, you have significant negotiating power. Sellers are more willing to make concessions.
- → Get pre-approved before you start your search. When the right property surfaces, being ready to move matters.
What Is Your Home Worth in This Market?
Generic online estimates miss the details that matter in our hillside market. Rob Cole delivers a localized, accurate valuation based on real comparable data from your specific Fullerton Hills neighborhood.
Rob Cole, Senior Broker Associate | The Cole Group at REAL Broker | DRE# 01265803
Based on information from California Regional Multiple Listing Service, Inc. as of 2026 and/or other resources. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker of MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.