The question on many minds heading into the new year is clear: Are home prices going up in Brea, California, in 2026?
Brea, a vibrant and growing community in northern Orange County, has long been a desirable place to live. Known for its excellent schools, beautiful neighborhoods, and convenient location, the city has consistently maintained strong property values. But with recent shifts in interest rates, inflation, and demand, many potential homebuyers and sellers are eager to understand where the Brea CA housing market is headed next.
In this detailed report, we’ll explore Brea’s housing market trends, the economic factors influencing 2026 prices, and what both buyers and sellers can expect in the coming year.
Understanding the Current Brea CA Housing Market
To predict where home prices are going, it’s important to first look at how the market performed in 2025 and what that means for 2026.
The average home price in Brea currently hovers around $1.1 million, with the median sale price sitting just above the $1 million mark. This positions Brea firmly as one of Orange County’s higher-priced markets, though still below ultra-luxury areas like Newport Beach or Laguna Beach.
Prices rose rapidly from 2020 through 2022, fueled by low mortgage rates and record demand. By 2023, interest rates began climbing, slowing the pace of growth. In 2025, the market found a new balance, stable, but no longer surging. Even with higher rates, home values in Brea remain strong thanks to limited inventory, steady demand, and a reputation for quality living. While nearby cities have seen moderate declines in value, Brea continues to hold firm, suggesting resilience heading into 2026.
Key Highlights from 2025:
Average home value: about $1,100,000
Average price per square foot: roughly $600
Median time on market: around 35 days
Inventory: typically 60–80 homes listed at a time
These figures demonstrate that the Brea CA housing market remains healthy, neither overheated nor collapsing, but steady with signs of gradual appreciation.
Factors Influencing 2026 Home Prices in Brea
Several important factors will shape whether home prices rise, stay flat, or fall in 2026. Let’s break them down.
A. Demand and Location Appeal
Demand remains one of the strongest drivers of Brea’s real estate market. The city’s combination of safety, accessibility, and amenities make it a consistent favorite among professionals and families alike.
Located near major job centers like Anaheim, Fullerton, and Irvine, Brea provides a balance between suburban living and urban convenience. For many, it’s the perfect compromise, close to work but far enough to enjoy peace and space.
This demand base helps protect home prices from sudden drops. Even when interest rates rise, there are always buyers who prioritize living in Brea over saving a few thousand dollars by moving elsewhere.
B. Limited Housing Supply
California’s long-standing housing shortage remains one of the biggest factors keeping home prices elevated.
In Brea, the issue is even more pronounced due to limited land for new construction. Most available space is already developed or reserved for commercial use. This scarcity of homes means that whenever listings hit the market, they draw consistent attention from serious buyers.
With fewer new developments planned for 2026, supply constraints are expected to continue, which in turn helps keep prices stable or gently rising.
C. Mortgage Rates and Affordability
Mortgage rates have had a major impact on buying power across the United States, and Brea is no exception.
In 2025, rates fluctuated between 6% and 7%, the highest levels seen in years. While these rates discouraged some buyers, they also prevented a flood of new listings from hitting the market, many current homeowners chose to stay put rather than give up their lower-rate loans.
In 2026, experts predict mortgage rates will gradually ease to around 5.5% to 6%. This potential drop could re-energize the market, allowing more buyers to qualify for financing and pushing prices slightly higher.
D. Local Economy and Employment
The economic stability of Orange County continues to play a role in keeping Brea’s housing market strong. The region’s diverse job base, including healthcare, education, technology, and manufacturing, provides steady employment opportunities.
As long as local job growth remains positive and unemployment low, buyers will continue to have confidence in the housing market, supporting moderate appreciation in home values.
E. Buyer Psychology and Market Confidence
Real estate often follows cycles of optimism and caution. After several years of uncertainty, many potential buyers are beginning to see 2026 as a return to normal.
While 2020-2022 saw explosive demand and 2023-2024 felt correctional, 2025 has restored stability. If that continues into 2026, confidence will likely increase, encouraging more home purchases, which naturally supports home price growth.
Home Price Forecast for 2026
Now for the big question: Will home prices in Brea go up in 2026?
Based on current data and market trends, the most likely scenario is modest price growth between 2% and 5% for the year.
This projection reflects a balance between limited supply, continued demand, and slightly improved affordability as mortgage rates ease.
Let’s look at a few possible scenarios.
Scenario 1: Modest Growth (Most Likely)
If economic conditions remain stable and interest rates dip slightly, Brea’s home prices should climb gradually. This scenario assumes that demand remains consistent and that no major economic shocks occur.
Buyers will likely continue competing for well-priced listings, particularly in sought-after neighborhoods such as Olinda Ranch, Downtown Brea, and North Hills.
Under this outcome, the average home price in Brea could reach $1.13–$1.16 million by late 2026.
Scenario 2: Flat Market
If rates stay high or the economy slows, Brea’s housing market may flatten. Prices might hold steady or even dip slightly in certain neighborhoods. However, given the city’s limited inventory, a significant decline is unlikely.
In this case, prices would likely hover near current 2025 levels, with minimal appreciation.
Scenario 3: Accelerated Growth
In a more optimistic case, say, interest rates drop below 5% and job growth surges, demand could spike again, especially among buyers who postponed purchases in 2024-2025.
This could push prices up more quickly, possibly reaching $1.18–$1.2 million by the end of 2026. Still, such a rapid increase is considered less probable under current economic conditions.
Neighborhood Trends in Brea
The Brea CA housing market doesn’t move uniformly. Certain areas experience faster appreciation due to school quality, amenities, and location.
Downtown Brea
Downtown has become a vibrant lifestyle hub, known for restaurants, entertainment, and walkability. Condos and townhomes here attract young professionals and empty nesters alike. Home prices are high but stable, and appreciation potential remains strong due to ongoing investment and demand.
Olinda Ranch
Located on Brea’s northern edge, Olinda Ranch is one of the city’s more exclusive residential communities. With newer construction, larger lots, and proximity to parks, prices here often exceed $1.3 million. Limited turnover keeps demand high.
North Hills
A well-established neighborhood with a mix of older and updated homes, North Hills appeals to families seeking good schools and quiet streets. Homes here typically range from $950,000 to $1.2 million and are expected to maintain steady growth.
Carbon Canyon
Known for its scenic hillside views and spacious properties, Carbon Canyon appeals to those looking for more privacy. Home prices vary widely, but the area’s natural setting makes it a long-term favorite among luxury buyers.
Opportunities and Challenges for Buyers
For buyers, 2026 offers a more balanced market compared to recent years. While prices are high, competition has cooled, allowing more breathing room for those serious about purchasing.
Opportunities
More choices: Inventory is slowly improving, especially for condos and smaller homes.
Less competition: The bidding wars of 2021-2022 have mostly subsided.
Potential rate relief: Slightly lower mortgage rates may boost affordability.
Long-term stability: Brea’s desirable location supports long-term value growth.
Challenges
High home prices: Even with lower rates, affordability remains tough for first-time buyers.
Limited supply: Quality listings still move quickly.
Down payment barriers: With median prices over $1 million, 20% down equals more than $200,000.
Rising insurance and taxes: California property taxes and insurance costs are inching upward, impacting overall affordability.
For buyers, preparation is key. Being pre-approved, financially ready, and flexible with timing will greatly increase your success in 2026.
Advice for Sellers in 2026
While sellers still hold a strong position in the Brea CA housing market, the landscape is more competitive than before. Pricing strategy and presentation are everything.
Tips for Sellers
Price Smartly: Overpricing can stall sales. Buyers today are more cautious and data-driven.
Invest in Presentation: Well-staged homes with quality photos stand out online.
Leverage Local Expertise: Work with agents who understand Brea’s micro-markets.
Be Flexible: Offering closing cost credits or accommodating move-in dates can attract more offers.
Highlight Lifestyle Benefits: Emphasize Brea’s amenities, schools, and community appeal, not just square footage.
Homes that are priced right, well-presented, and marketed effectively will continue to sell quickly, especially in high-demand neighborhoods.
The Role of Mortgage Rates and the Broader Economy
Mortgage rates have been the single most influential factor in shaping housing prices over the past few years. In 2026, economists predict moderate stability, with slight improvement as inflation cools.
If rates fall closer to 5.5%, we may see renewed demand, particularly among move-up buyers who have been waiting for better affordability.
The local economy also plays a big role. Orange County’s job market remains strong, with expansion in healthcare, technology, and professional services. These sectors continue to attract high-income professionals, the exact demographic that drives the Brea CA housing market.
A strong job base and stable mortgage rates together provide a recipe for steady price appreciation.
Long-Term Outlook Beyond 2026
Looking further ahead, Brea’s long-term housing outlook remains positive. Population growth, stable schools, and ongoing investment in infrastructure make the city well-positioned for sustainable appreciation.
Over the next decade, analysts expect Brea’s home values to rise gradually, perhaps 12% to 15% total growth by 2035. While not explosive, it represents consistent and reliable value-building potential.
Key long-term strengths include:
Limited land for expansion
Strong community planning and zoning
A mix of residential and commercial balance that supports home values
Continued popularity among professionals and families
Brea’s challenge will remain affordability. Unless new housing developments emerge, younger buyers may find it harder to enter the market. Still, for those who do, owning in Brea offers long-term stability and growth potential.
Final Thoughts: So, Are Home Prices Going Up?
The answer is yes, home prices in Brea are expected to rise modestly in 2026.
While the days of double-digit gains are over for now, Brea’s strong fundamentals, limited supply, stable employment, and lasting desirability, point to steady appreciation ahead.
Homebuyers can expect slight price increases, likely between 2% and 5%, while sellers should continue to benefit from a market that still favors well-priced, well-presented homes.
The Brea CA housing market continues to show resilience, making it a reliable and attractive option for those looking to invest, settle down, or grow long-term wealth through real estate.
In short: the market isn’t exploding, but it’s healthy, and that’s good news for everyone.
Start Your Brea Home Journey with Jack Ma Real Estate
Ready to take the next step in the Brea CA housing market? Our team understands every corner of Brea, from neighborhood trends and market forecasts to the best opportunities for buyers and sellers. Let us help you make confident decisions backed by real market insight.
Get expert advice on:
Current home prices and investment potential in Brea
The best time to buy or sell in 2026
Neighborhoods with the highest long-term value
Contact Jack Ma Real Estate today to schedule your free consultation and learn how you can achieve your real estate goals in 2026.
Frequently Asked Questions (FAQs)
1. Will home prices in Brea go up in 2026?
Yes, most experts forecast modest appreciation of around 2%–5% due to steady demand and limited housing supply.
2. Are homes in Brea becoming more affordable?
Not significantly. While interest rates may drop slightly, high property values and limited inventory keep Brea expensive relative to national averages.
3. Is it a good time to buy a home in Brea?
Yes, for long-term buyers. Prices are stable, and moderate growth is expected. Waiting could mean paying more later if rates decline.
4. Are there areas in Brea where prices might rise faster?
Neighborhoods like Olinda Ranch, Downtown Brea, and North Hills are expected to appreciate faster due to strong demand and community amenities.
5. What can first-time buyers do to enter the market?
Explore condos or smaller homes, consider higher down payments to offset rates, and work with local agents who know Brea’s sub-markets well.
