Santa Ana Pending Home Sales Rise Despite Higher Mortgage Rates
Pending home sales in Santa Ana and across California have returned to positive year-over-year growth ahead of the spring season. The local market is seeing slowly rising inventory and moderate price growth, signaling stabilization. However, the average 30-year fixed mortgage rate has ticked up to 6.27%, a factor that could constrain affordability and temper demand later in the year.
- The California Association of Realtors (C.A.R.) forecasts that statewide existing single-family home sales will rise 2% to 274,400 units in 2026, with the median home price projected to increase by 3.6% to a record $905,000. - While pending sales are up, the median sale price for a home in Santa Ana in January 2026 was approximately $848,000, a 2.6% decrease compared to the previous year, and homes are staying on the market longer, averaging 73 days. - Broader inventory in Orange County has increased significantly, up 30% year-over-year, which is contributing to a more balanced market where sellers no longer have the absolute advantage they held in previous years. - Housing affordability is expected to improve slightly across California, with C.A.R. projecting that 18% of households will be able to afford a median-priced home in 2026, up from 17% in 2025. - Mortgage rates are stabilizing due to the Federal Reserve's neutral stance following rate cuts in late 2025; future rate movements will be highly dependent on inflation trends and labor market data. - Major local development projects are underway, including the OC Streetcar system set to begin service in 2026 and "The Village Santa Ana," a long-term plan to redevelop South Coast Plaza Village with up to 1,583 new residential units and 80,000 square feet of retail space. - As of early 2026, the majority of residential properties in Santa Ana sell for below the initial asking price, typically closing at a 5% to 8% discount.
