The housing market in Garden Grove, California, has long been a topic of interest for homebuyers, sellers, and real estate enthusiasts alike. Nestled in the heart of Orange County, this vibrant city offers a unique blend of suburban charm, cultural diversity, and proximity to major attractions like Disneyland. However, one question continues to linger as we move through 2025: Are homes in Garden Grove still scarce? With shifting economic conditions, rising interest rates, and evolving buyer preferences, let’s dive into the current state of the Garden Grove housing inventory and explore whether scarcity remains a defining feature of this market.
A Snapshot of Garden Grove’s Housing Market
Garden Grove is no stranger to the competitive real estate landscape of Southern California. Known for its affordability relative to neighboring cities like Irvine or Newport Beach, it has historically attracted a mix of first-time buyers, families, and investors. But affordability doesn’t necessarily translate to availability, and recent years have seen the city grapple with low inventory—a trend that mirrors much of the broader Orange County region.
As of early 2025, the Garden Grove housing market remains a seller’s market, characterized by high demand and limited supply. According to recent data, the median home price in Garden Grove hovers around $928,628, reflecting a 9.3% increase from the previous year. Meanwhile, the number of homes actively listed for sale has seen fluctuations, with 157 homes available in December 2024—a notable decrease from the 171 listed just a month prior in November. This drop in inventory, coupled with a competitive buying environment where 64.8% of homes sold above asking price in December 2024, suggests that scarcity is still a significant factor.
The Inventory Rollercoaster: A Closer Look
To understand whether homes are still scarce in Garden Grove, we need to examine the inventory trends over the past year. Housing inventory is typically measured in terms of “months of supply,” which indicates how long it would take to sell all available homes at the current sales pace. A balanced market generally has a 4-6 month supply, while anything below that signals a seller’s market with limited options for buyers.
In Garden Grove, the inventory has consistently remained tight. For instance, data from mid-2024 pegged the city’s months of supply at just 1.5 months, well below the threshold for a balanced market. Fast forward to December 2024, and while exact months-of-supply figures for the latest period aren’t explicitly stated, the reduction in active listings from 171 to 157 over a single month hints at continued pressure on availability. With 54 homes sold or pending in December—an increase of 10.2% from November—the pace of sales remains brisk, further straining the limited stock.
Breaking it down by bedroom type offers additional insight. Between November and December 2024, the inventory of one-bedroom homes dropped by 22.2%, two-bedroom homes by 17.6%, and three-bedroom homes by 11.8%. Four-bedroom homes held steady, while five-bedroom homes saw a modest 5% increase. These declines in smaller and mid-sized homes—the bread and butter of many first-time buyers—underscore the scarcity felt most acutely by those entering the market.
Why Is Inventory Still Low?
Several factors contribute to Garden Grove’s persistent inventory crunch. First, the city’s appeal as a relatively affordable option in Orange County keeps demand high. With a median sale price of $1.01 million in January 2025 (up 15.6% from the previous year), homes here are still significantly cheaper than the county’s pricier coastal enclaves. This affordability, however, attracts more buyers than the market can accommodate, especially as population growth and migration trends bolster demand.
Second, construction activity hasn’t kept pace with this demand. While nearby Irvine has seen a boom in new home development, Garden Grove’s housing stock remains dominated by older homes built between the 1940s and 1960s (60.64% of total units, per historical data). New construction, which accounts for just 6.25% of homes built since 2000, hasn’t been robust enough to offset the scarcity of existing properties. Zoning restrictions, land availability, and the high cost of building in California further complicate efforts to boost supply.
Third, homeowner behavior plays a role. Many Garden Grove residents, benefiting from appreciation rates that have averaged 7.36% annually over the past decade, are opting to stay put rather than sell. Low interest rates locked in during previous years also discourage homeowners from listing their properties, as they’d face higher rates if they re-entered the market as buyers. This “lock-in effect” keeps inventory stagnant, even as buyer interest surges.
The Competitive Edge: Bidding Wars and Fast Sales
The scarcity of homes in Garden Grove manifests in its competitive market dynamics. Homes here receive an average of five offers and sell in about 37 days, with “hot” properties moving even faster—some going pending in as little as 12 days for 5% above list price. In December 2024, 74% of homes sold within 30 days, and the average listing age crept up to 26 days, a 42.4% increase from the previous year. This slight uptick in days on market could signal a subtle cooling, but it’s far from a buyer’s market.
Bidding wars remain a hallmark of Garden Grove’s real estate scene. With 64.8% of homes selling above asking price in December 2024, buyers are clearly willing to stretch their budgets to secure a property. This trend is particularly pronounced in popular neighborhoods near Little Saigon, where cultural vibrancy and proximity to amenities drive fierce competition.
Are There Signs of Relief?
Despite the ongoing scarcity, there are glimmers of hope for prospective buyers. Orange County as a whole has seen a 14% year-over-year increase in inventory, suggesting that the region might be inching toward a more balanced market. In Garden Grove specifically, the uptick in sales volume (54 homes in December 2024 versus 49 in November) could indicate that more sellers are testing the waters, perhaps lured by high prices or shifting personal circumstances.
Additionally, Accessory Dwelling Units (ADUs) present a potential avenue for expanding housing options. State and local policies have eased restrictions on ADU construction, allowing homeowners to add secondary units—such as converted garages or detached cottages—to their properties. While not a full solution to the inventory shortage, ADUs could ease pressure by increasing rental availability and providing multigenerational living options, indirectly freeing up larger homes for sale.
Economic factors might also nudge the market toward equilibrium. Rising mortgage rates, which have hovered stubbornly high despite Federal Reserve rate cuts, could temper buyer demand over time. If affordability continues to erode—Garden Grove’s median sale price is already 142% above the national average—some buyers may pause their searches, giving inventory a chance to stabilize.
What This Means for Buyers and Sellers
For buyers, the message is clear: Garden Grove remains a tough nut to crack. With homes still scarce, preparation is key. Securing pre-approval, acting quickly on listings, and being ready to bid competitively are non-negotiable in this environment. Exploring less competitive segments, like five-bedroom homes (which saw a slight inventory bump), or considering properties needing TLC could also offer an edge.
Sellers, meanwhile, are in the driver’s seat. The low inventory and high demand mean properties are likely to fetch top dollar, especially if priced strategically and marketed well. However, the slight increase in days on market suggests that overpricing could backfire—buyers, while eager, aren’t limitless in their willingness to pay.
Looking Ahead: Will Scarcity Persist?
As we look toward the rest of 2025, the Garden Grove housing inventory faces both challenges and opportunities. Without significant new construction or a shift in homeowner behavior, scarcity is likely to remain a defining trait. Yet, external pressures—rising rates, regional inventory growth, and potential policy shifts—could gradually loosen the market’s tight grip.
For now, the answer to “Are homes still scarce in Garden Grove?” is a resounding yes. The city’s allure, combined with structural supply constraints, keeps inventory low and competition high. Whether you’re a buyer bracing for battle or a seller poised to profit, understanding these dynamics is crucial to navigating Garden Grove’s real estate landscape in 2025.
What are your thoughts? Have you experienced the housing crunch in Garden Grove firsthand? Share your stories in the comments below, and stay tuned for more updates on this ever-evolving market!
