Anaheim Real Estate: Is Now a Good Time to Buy or Sell?

The Anaheim real estate market in 2025 is a dynamic landscape, shaped by economic factors, local demand, and the city’s unique appeal as a Southern California hub. With median home prices hovering around $900,000 and a competitive seller’s market, both buyers and sellers face critical decisions. Is now the right time to dive into the Anaheim housing market, or should you wait for a shift? In this blog post, we’ll explore the latest trends, key neighborhoods, and practical considerations to help you decide whether to buy or sell in Anaheim this year.

Understanding the Anaheim Housing Market in 2025

Anaheim, located in Orange County, California, is known for its vibrant economy, proximity to Disneyland, and diverse neighborhoods. The city’s real estate market has been a focal point for families, investors, and professionals due to its strong fundamentals. As of April 2025, the median home price in Anaheim is approximately $900,000, reflecting a modest year-over-year increase of 0.7%. The median sale price per square foot stands at $599, up 9.7% from last year, indicating sustained demand despite economic pressures like elevated mortgage rates.

The market remains very competitive, with a Redfin Compete Score of 77 out of 100. Homes typically receive multiple offers—averaging five per listing—and sell in about 28 days, faster than the 34 days recorded last year. In April 2025, 123 homes were sold, a slight increase from 122 the previous year. Notably, 54% of homes sold above asking price, 16% at asking, and 31% below, suggesting that while competition is fierce, strategic pricing is crucial.

Anaheim is firmly a seller’s market, characterized by demand exceeding supply. The city’s housing shortage, with only 0.32 homes per person, drives this imbalance, amplified by attractions like Disneyland and a robust job market. However, forecasts suggest a potential cooling, with some analysts predicting a slight price correction by mid-2025 as mortgage rates and economic uncertainty influence buyer behavior.

Is Now a Good Time to Buy in Anaheim?

Pros of Buying in 2025

1. Long-Term Appreciation Potential: Despite short-term fluctuations, Anaheim’s real estate has shown strong appreciation over time. Homes purchased three years ago have appreciated by an average of $225,397, far outpacing the national average. With a projected long-term price increase to $786,196 by 2029, buying now could yield significant returns for long-term homeowners or investors.

2. Improving Inventory: Housing inventory in Anaheim grew by 2.8% from March to April 2025, with 434 homes available. This slight increase offers buyers more choices compared to the record-low inventory of recent years. Neighborhoods like Anaheim Hills, with its family-friendly amenities, and The Anaheim Colony Historic District, known for its charming character homes, are particularly appealing.

3. Expected Mortgage Rate Declines: Mortgage rates, averaging 6.86% for a 30-year fixed loan as of April 2025, are expected to ease slightly by year-end, potentially reaching the low-to-mid 6% range. A decline could improve affordability, making 2025 a strategic time to lock in a purchase before competition intensifies.

4. Strong Local Economy: Anaheim’s economy, bolstered by tourism and job growth, supports housing demand. The unemployment rate is 5.2%, below the state average, and Orange County’s job growth rate of 2.3% signals stability. Proximity to major employers and attractions like Disneyland makes Anaheim a desirable location for families and renters, enhancing property value stability.

Cons of Buying in 2025

1. High Prices and Affordability Challenges: With a median home price of $900,000—105% above the national average—and a cost of living 56% higher than average, affordability remains a hurdle. Buyers need an annual income of approximately $160,000 to afford a home with a 25% down payment, limiting the pool of qualified buyers.

2. Competitive Market: The seller’s market means buyers often face bidding wars, with 62% of homes selling above asking price. This competitiveness can lead to overpaying or waiving contingencies, increasing financial risk.

3. Potential Price Correction: Some forecasts, including those for the broader Los Angeles-Long Beach-Anaheim area, suggest a slight price stagnation or decline by May 2025. If demand softens or inventory grows, buyers who purchase now could face short-term value dips.

4. Elevated Mortgage Rates: While rates may decline, they remain high compared to the sub-3% rates of a few years ago. High financing costs can stretch budgets, particularly for first-time buyers.

Buyer Tips

• Get Pre-Approved: Secure a mortgage pre-approval to understand your budget and strengthen your offer in a competitive market.

• Work with a Local Agent: A knowledgeable real estate agent can help you navigate Anaheim’s neighborhoods, identify well-priced homes, and negotiate effectively.

• Consider Timing: Buying in the fall or winter may reduce competition, as spring and summer are peak seasons.

• Focus on High-Demand Areas: Neighborhoods like Anaheim Hills and West Anaheim offer strong appreciation potential due to their amenities and school districts.

Is Now a Good Time to Sell in Anaheim?

Pros of Selling in 2025

1. Seller’s Market Advantage: With demand outpacing supply, sellers can command premium prices. Homes sell quickly—76% within 30 days—and often above asking, especially in competitive neighborhoods like East Anaheim and The Anaheim Colony.

2. High Equity Gains: Homeowners who purchased in recent years have significant equity. For example, homes bought one year ago appreciated by $26,024 on average, providing sellers with substantial profits.

3. Strong Buyer Demand: Anaheim’s appeal, driven by its proximity to Disneyland and revitalized entertainment districts, attracts families, investors, and out-of-state buyers. In April 2025, 4% of homebuyers searched to move into Anaheim from outside metros, with Houston and San Francisco leading the pack.

4. Competitive Pricing Power: With 62% of sales closing above listing price, sellers can price strategically to maximize returns, particularly for single-family homes in good school districts.

Cons of Selling in 2025

1. Slower Sale Times: The average days on market increased to 53 days in January 2025, up from 30 days in 2024, indicating a slight cooling. Sellers may need to be patient or adjust pricing if demand softens further.

2. Potential Market Shift: Forecasts suggest a move toward a more balanced market by mid-2025. If inventory continues to grow or rates drop significantly, seller leverage could diminish.

3. High Mortgage Rates for Relocation: Sellers planning to buy another home in Anaheim or nearby may face high financing costs, complicating relocation plans.

4. Neighborhood Variability: While areas like Anaheim Hills (median price $1.2M, up 13% year-over-year) remain hot, others, like South Anaheim, show slower growth. Sellers in less competitive areas may need to invest in upgrades to attract buyers.

Seller Tips

• Price Realistically: Work with an agent to set a competitive price based on recent sales in your neighborhood. Overpricing can lead to longer sale times.

• Enhance Curb Appeal: Make repairs and upgrades to highlight your home’s best features, as buyers are discerning in a competitive market.

• Stage for Success: Professional staging can help your home stand out, especially for online listings viewed by out-of-state buyers.

• Time Your Sale: List in spring or early summer to capitalize on peak buyer activity, but be prepared for faster sales in hot neighborhoods.

Key Neighborhoods to Watch

• Anaheim Hills: Known for its upscale, family-friendly vibe, this area has a median price of $1.2M and a competitive market with homes selling in 27 days. Ideal for buyers seeking top-rated schools and sellers leveraging high demand.

• The Anaheim Colony Historic District: Popular for its charming historic homes, this neighborhood attracts buyers with its character and proximity to dining and entertainment.

• West Anaheim: Offers more affordable options with strong demand due to its community feel and access to revitalized areas.

• East Anaheim: Competitive for single-family homes, especially near Ward Terrace, with prices reflecting the area’s growing popularity.

Economic and Lifestyle Factors

Anaheim’s real estate market is underpinned by a strong local economy and lifestyle appeal. The city’s tourism-driven economy, centered around Disneyland, ensures steady job growth and housing demand. However, buyers and sellers should consider environmental risks, such as a projected 200% increase in days over 95ºF in the next 30 years and flood risks affecting 26% of Anaheim Hills properties. These factors may influence long-term property values and insurance costs.

Final Thoughts: Buy, Sell, or Wait?

For buyers, 2025 offers opportunities in a gradually improving inventory landscape, but affordability challenges and competition require careful planning. If you’re financially ready and focused on long-term growth, buying now in high-demand neighborhoods could be wise, especially if rates decline. However, if you’re sensitive to short-term price corrections, waiting until mid-2025 may provide better value.

For sellers, the current seller’s market favors quick sales and high returns, particularly for well-maintained homes in competitive areas. If you’re ready to capitalize on equity gains and don’t plan to buy immediately, now is an excellent time to sell. However, if you’re relocating within Anaheim, high mortgage rates may impact your next purchase.

Ultimately, your decision should align with your financial goals, timeline, and risk tolerance. Consult a local real estate agent to analyze your specific situation and explore Anaheim’s diverse neighborhoods. Whether you’re buying your dream home or selling for a profit, understanding the market’s nuances will empower you to make confident choices in 2025.