The Tustin, California, real estate market has long been a focal point for homebuyers, sellers, and investors due to its prime location in Orange County, vibrant community, and proximity to major economic hubs like Irvine and Santa Ana. As we move through 2025, one question dominates the conversation: Is Tustin a buyer’s or seller’s market? This blog post dives deep into the latest market trends, data, and forecasts to help you understand the dynamics shaping Tustin’s housing landscape and make informed decisions whether you’re buying, selling, or investing.
Understanding Buyer’s and Seller’s Markets
Before we explore Tustin’s specific market conditions, let’s clarify what defines a buyer’s or seller’s market:
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Seller’s Market: Occurs when demand exceeds supply, meaning there are more buyers than available homes. This leads to higher home prices, faster sales, and often multiple offers or bidding wars. Sellers have the upper hand, and homes typically sell at or above asking price.
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Buyer’s Market: Occurs when supply exceeds demand, with more homes available than buyers. This results in lower prices, longer days on the market, and more negotiating power for buyers, who may secure deals below asking price or with seller concessions.
Tustin’s market in 2025 is shaped by a combination of local and national trends, including inventory levels, home prices, days on market, mortgage rates, and broader economic factors. Let’s break it down.
Tustin Real Estate Market in 2025: The Big Picture
Inventory and Supply
In December 2024, Tustin had 83 homes for sale, a 10.8% decrease from November 2024, with a median list price of $1,172,875, up 11.5% from the previous year. The inventory breakdown by bedroom type shows declines across most categories: 1-bedroom homes dropped by 12.5%, 2-bedroom homes by 26.3%, 3-bedroom homes by 6.7%, and 5-bedroom homes by 16.7%, while 4-bedroom homes remained stable. This reduction in inventory suggests a tightening supply, a hallmark of a seller’s market.
However, Orange County as a whole, including Tustin, has seen inventory rise in 14 of the first 16 weeks of 2025, with 4,136 active listings as of April 21, 2025. This regional increase could signal a shift toward more balanced conditions, but Tustin’s specific inventory remains relatively low, maintaining seller-friendly dynamics. Nationally, inventory has been growing, but experts note that most increases come from new construction rather than existing homes, as high mortgage rates continue to create a “lock-in effect” for homeowners with low-rate mortgages.
Home Prices and Appreciation
Tustin’s median home sale price in December 2024 was $1,172,875, a significant 11.5% increase year-over-year, with a median price per square foot of $678. Price growth varied by home size: 1-bedroom homes rose 18.8%, 2-bedroom homes 13.2%, 3-bedroom homes 12.4%, 4-bedroom homes 15.8%, and 5+ bedroom homes 20.6%. In February 2025, Redfin reported a median sale price of $1.1 million, up 9% from the previous year, with a median price per square foot of $664.
These price increases reflect strong demand and limited supply, reinforcing Tustin’s status as a seller’s market. However, some forecasts suggest a potential slowdown. WalletInvestor predicts Tustin home prices may rise modestly from $819,126 in March 2024 to $840,533 by March 2025, a 2.61% increase, but could face a slight decline in the short term. This contrasts with the robust growth seen in recent data, indicating uncertainty in long-term price trends.
Days on Market and Sales Pace
Homes in Tustin are selling relatively quickly, with an average listing age of 30 days in December 2024, up 37.6% from the previous year. In February 2025, homes sold in about 36 days on average, compared to 21 days the prior year, suggesting a slight cooling in sales pace. During December 2024, 63% of homes sold within 30 days, 28% within 30 to 90 days, and 9% over 90 days.
While the increase in days on market might hint at a shift toward a more balanced market, the fact that most homes sell within 30 days indicates strong buyer demand, a characteristic of a seller’s market. In nearby North Tustin, 57% of homes sold within 30 days in January 2025, with an average listing age of 32 days. These metrics suggest that well-priced homes in desirable areas continue to move quickly.
Mortgage Rates and Affordability
Mortgage rates remain a critical factor in 2025. As of April 23, 2025, the average 30-year fixed mortgage rate is 6.86%, down slightly from a high of 7% earlier in the year but still elevated compared to the sub-3% rates of the early 2020s. High rates have reduced affordability, particularly in Tustin, where the median home price is 163% higher than the national average, and the overall cost of living is 56% above the national average.
The “golden handcuff” effect, where homeowners with low-rate mortgages are reluctant to sell, continues to limit inventory, favoring sellers. However, some buyers are adapting to the “new normal” of higher rates, which could increase market activity if rates stabilize in the second half of 2025, as predicted by some experts.
Buyer and Seller Dynamics
Tustin’s market remains competitive, with homes receiving an average of four offers in February 2025. This competition drives prices higher and benefits sellers, but buyers are gaining some leverage. Nationally, 2025 is seeing a shift toward a more buyer-friendly market due to rising inventory and price reductions in some areas. In Tustin, however, the low inventory and strong demand keep sellers in the driver’s seat, though buyers may find opportunities in overpriced listings or homes needing work.
In Orange County, only 14% of listings (541 homes) have been on the market for over 90 days, indicating robust buyer activity. Tustin’s diverse neighborhoods, from the historic charm of Old Town to the modern appeal of The District, attract a wide range of buyers, including families, professionals, and out-of-state migrants from high-cost areas like San Francisco.
Is Tustin a Buyer’s or Seller’s Market in 2025?
Based on the data, Tustin remains a seller’s market in 2025, characterized by:
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Low inventory: With only 83 homes for sale in December 2024 and declines in most bedroom categories, supply is tight, giving sellers an advantage.
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Rising prices: Median home prices are up 9–11.5% year-over-year, reflecting strong demand and limited supply.
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Fast sales: Most homes sell within 30 days, and multiple offers are common, indicating a competitive market.
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High demand: Tustin’s appeal, driven by its location, schools, and community amenities, continues to attract buyers, including out-of-state migrants.
However, there are signs of a potential shift toward a more balanced market:
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Increasing regional inventory: Orange County’s rising inventory could spill over into Tustin, giving buyers more options.
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Slightly longer days on market: The increase from 21 to 36 days suggests buyers are taking more time to decide, which could lead to more negotiating power.
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National trends: Experts predict a buyer-friendly market in 2025 due to rising inventory and stabilizing mortgage rates, which could influence Tustin if local supply grows.
Tips for Buyers in Tustin’s 2025 Market
Navigating a seller’s market can be challenging, but buyers can succeed with the right strategies:
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Get Pre-Approved: A pre-approval letter shows sellers you’re serious and strengthens your offer in a competitive market.
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Act Quickly: With homes selling in 30–36 days, be prepared to tour properties and submit offers promptly.
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Work with a Local Expert: A Tustin real estate agent, like those at Mr. Tustin Real Estate, can provide insights into neighborhoods and help you find off-market deals.
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Be Flexible: Consider homes that need minor updates or are slightly overpriced, as these may offer negotiation opportunities.
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Monitor Mortgage Rates: If rates stabilize or drop in late 2025, refinancing could improve affordability.
Tips for Sellers in Tustin’s 2025 Market
Sellers have the upper hand, but maximizing profits requires strategic planning:
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Price Competitively: Overpricing can lead to longer days on market, especially with regional inventory rising. Work with an agent to set a realistic price.
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Stage and Market Effectively: Highlight your home’s unique features, such as proximity to Tustin’s top schools or parks, to attract buyers.
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Time Your Sale: Spring 2025 is expected to see high buyer activity, making it an ideal time to list.
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Be Open to Offers: While multiple offers are common, consider all proposals carefully to secure the best terms.
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Leverage Demand: Tustin’s appeal to out-of-state buyers and professionals ensures strong interest, so emphasize lifestyle benefits in your listing.
Looking Ahead: Tustin’s Real Estate Future
Tustin’s real estate market in 2025 is poised to remain seller-friendly, driven by low inventory, rising prices, and strong demand. However, broader trends, such as increasing regional inventory and stabilizing mortgage rates, could tilt the market toward balance by late 2025 or 2026. External factors, like tariffs on building materials or economic shifts, may also impact new construction costs and inventory levels, potentially affecting prices.
For buyers, the key is to act decisively while exploring opportunities in less competitive listings. For sellers, capitalizing on current demand and pricing strategically will maximize returns. Whether you’re buying or selling, partnering with a knowledgeable local agent is crucial to navigating Tustin’s dynamic market.
Conclusion
Tustin, California, remains a seller’s market in 2025, with tight inventory, robust price growth, and quick sales favoring homeowners. However, buyers are gaining some ground as regional inventory rises and days on market increase slightly. By understanding these trends and preparing strategically, both buyers and sellers can achieve their real estate goals in this vibrant Orange County community.
Ready to make your move in Tustin? Contact a local real estate expert today to explore your options and stay ahead of the market. Whether you’re dreaming of a historic home in Old Town or a modern condo in The District, 2025 offers opportunities for those who act wisely.
