Anaheim Hills Real Estate Market Update: Q1 2026 Trends and Predictions

By Brian Kidd, Canyon Realty | CA DRE# 01901810

Q1 2026 Market Snapshot

Sources: Redfin Anaheim Hills, Homes.com, Freddie Mac, Zillow. Data current as of February 2026.

Where We Are Now

Anaheim Hills enters Q1 2026 in a notably different position than a year ago. Home prices have appreciated 6% year-over-year, with the median sale price settling between $1.1 million and $1.15 million depending on the data source. This represents continued growth, but at a more sustainable pace than the double-digit gains we saw in previous years.

The most significant shift? Mortgage rates have finally provided relief. The average 30-year fixed rate now sits at approximately 6%, down from nearly 7% in early 2025. According to Freddie Mac's January 29, 2026 report, rates averaged 6.10%, compared to 6.95% at the same time last year. This represents the lowest rates we've seen in three years.

Transaction volume tells an encouraging story. December 2025 saw 144 homes sold in Anaheim Hills, up from 133 the previous year. More buyers are entering the market, motivated by improved borrowing conditions and the realization that waiting for dramatically lower rates may not be realistic.

Price Trends by Neighborhood

Anaheim Hills isn't a monolithic market. Different neighborhoods are showing distinct patterns:

The Summit of Anaheim Hills continues to outperform the broader market, with December 2025 median prices reaching $1.3 million, representing 7.4% year-over-year appreciation. This premium submarket consistently attracts buyers seeking newer construction and gated community amenities.

Single-family homes across Anaheim Hills are commanding a median price of approximately $1.275 million as of February 2026, according to Homes.com data. The price range spans from around $800,000 for older townhomes and condos to over $6 million for estate properties in communities like Hidden Canyon and Belsomet.

Condos and townhomes remain the entry point for the community, with options starting in the low $700,000s in communities like Summit Renaissance and Viewpointe.

The Zillow Home Value Index shows a slightly different picture, with the typical home value at approximately $1.1 million, reflecting a 2.9% decline over the past year. This variance between sale prices and estimated values often indicates that active sellers are pricing higher than algorithmic estimates, which can extend time on market.

What's Driving the Market

Improved Affordability

The nearly one-percentage-point drop in mortgage rates has meaningfully improved buying power. On a $1 million purchase with 20% down, a buyer today pays approximately $4,792 monthly in principal and interest at 6%, compared to roughly $5,317 at 7%. That's over $500 per month in savings, or more than $6,000 annually.

Limited Inventory

Orange County continues to face constrained supply. According to housing market analysts, the county currently has approximately 2.6 months of inventory, well below the 5-6 months considered a balanced market. The "lock-in effect" persists: homeowners who secured rates between 2020 and 2021 in the 2-3% range remain reluctant to sell and take on higher financing costs.

Strong Local Economy

Anaheim Hills benefits from Orange County's diverse economic base. Tourism, healthcare, education, and tech sectors continue to drive employment. The low vacancy rate of approximately 4.5% in the rental market suggests strong underlying housing demand.

Premium School District

Anaheim Hills feeds into highly-rated schools including Canyon High School and El Rancho Charter Middle School, consistently ranking among Orange County's best. This continues to attract families willing to pay a premium for educational quality.

Days on Market: A Shifting Dynamic

One metric worth watching: homes are taking longer to sell. Current days on market ranges from 35-48 days, up from 28-42 days a year ago. This isn't cause for concern; rather, it signals a market moving toward balance.

What this means practically:

• For sellers: Proper pricing from day one is critical. According to Orange County market data, approximately 41% of listings have reduced their asking price at least once. Overpriced homes are sitting longer.
• For buyers: You have slightly more time to make decisions, but well-priced properties in desirable locations still move quickly. Homes in The Summit sold 8% over asking price in recent transactions.

Mortgage Rate Outlook for 2026

Where are rates headed? Multiple forecasting sources provide guidance:

• Freddie Mac (January 2026): Rates remain near three-year lows, with 30-year fixed averaging 6.10%
• Mortgage Bankers Association: Projects rates near 6.1% through 2026
• Fannie Mae: Forecasts rates potentially reaching 5.9% by Q4 2026

The consensus: expect rates to remain in the 5.5% to 6.4% range through 2026, with potential for modest improvement if economic conditions allow. The Federal Reserve held rates steady at their January 2026 meeting, and no dramatic cuts are anticipated near-term.

For buyers who've been waiting for the "perfect" rate, this may be as good as it gets for the foreseeable future. Historical context matters: 6% rates are not abnormally high. From the 1970s through the 1990s, rates regularly exceeded 7%, with peaks above 18% in 1981.

2026 Market Predictions

Based on current data and trends, here's what I expect for Anaheim Hills through 2026:

Price Appreciation: 2-5%

The days of double-digit annual gains are behind us. Expect moderate, sustainable appreciation in the 2-5% range. This is healthy for long-term market stability and accessibility.

Inventory: Gradual Increase

More homes will come to market as homeowners accept current rate realities and life circumstances necessitate moves. However, dramatic inventory surges are unlikely. Orange County remains structurally undersupplied.

Buyer Demand: Strong but Disciplined

Improved rates will draw more buyers, but they're more educated and cautious than the pandemic-era frenzy. Properties must be priced correctly and show well to achieve quick sales.

Market Balance

We're moving toward equilibrium. Neither a strong buyer's nor seller's market, but something in between. This creates opportunity for both sides of the transaction when approached strategically.

Comparing Anaheim Hills to Nearby Markets

Sources: Redfin, Homes.com, Zillow. Data reflects late 2025/early 2026.

Anaheim Hills occupies a strong middle position in the Orange County market. It offers more attainable entry points than Yorba Linda while delivering the premium schools, safety, and community amenities families seek. Compared to citywide Anaheim, the Hills commands a roughly 15-20% premium, justified by school quality and neighborhood character.

Who Should Buy Now?

Move forward if:

• You've found a home that meets your needs and you can comfortably afford the payment
• You're relocating for work or family reasons
• You're currently renting and your payment would be comparable to ownership costs
• You plan to stay at least 5-7 years

Consider waiting if:

• You're stretching beyond comfortable affordability limits
• Your employment situation is uncertain
• You're hoping for a market crash (unlikely in Anaheim Hills given supply constraints)

Who Should Sell Now?

Move forward if:

• You're downsizing and your equity gains offset rate differences
• You're relocating out of area
• Your home has appreciated significantly and you're ready to capitalize
• You need to sell regardless of market conditions

Consider timing if:

• You're moving within Anaheim Hills or nearby areas (evaluate the trade-off carefully)
• Spring selling season (March-May) typically brings more buyer activity

The Bottom Line

Anaheim Hills real estate in Q1 2026 presents a market finding its footing after years of volatility. Prices remain elevated but stable. Rates have improved meaningfully. Inventory is gradually loosening. This isn't the frantic market of 2021 or the frozen market of 2023. It's something more sustainable.

For buyers, the combination of lower rates and slightly more inventory creates genuine opportunity. For sellers, pricing discipline and property preparation matter more than they have in years.

After more than 20 years helping families buy and sell homes throughout Orange County, I can tell you this: the best time to buy or sell is when your personal circumstances align with your financial readiness. Markets will always fluctuate. Your life plans shouldn't wait indefinitely for "perfect" conditions.

Frequently Asked Questions

What is the median home price in Anaheim Hills in 2026?

As of early 2026, the median home price in Anaheim Hills ranges from $1.1 million to $1.15 million, depending on the data source. Single-family homes specifically have a median around $1.275 million. Prices have appreciated approximately 6% compared to the same period last year.

Are home prices going up or down in Anaheim Hills?

Home prices in Anaheim Hills have increased approximately 6% year-over-year as of December 2025, according to Redfin data. However, this represents a moderation from the double-digit gains seen in previous years. Most forecasts predict continued modest appreciation of 2-5% through 2026.

What are current mortgage rates in 2026?

As of February 2026, the average 30-year fixed mortgage rate is approximately 5.97% to 6.16%, according to Freddie Mac and Zillow data. This is down nearly a full percentage point from February 2025, when rates averaged around 6.95%. The 15-year fixed rate averages approximately 5.37% to 5.62%.

How long do homes take to sell in Anaheim Hills?

Homes in Anaheim Hills currently sell in approximately 35-48 days on average, depending on the data source and specific neighborhood. This is slightly longer than a year ago, reflecting a market moving toward more balanced conditions. Well-priced properties in desirable locations continue to sell faster.

Is Anaheim Hills a good place to invest in real estate?

Anaheim Hills has demonstrated consistent long-term appreciation and strong rental demand due to excellent schools, low crime rates, and proximity to employment centers. The current vacancy rate in the area is approximately 4.5%, indicating healthy rental demand. However, high entry prices mean careful financial analysis is essential for investment properties.

How does Anaheim Hills compare to Yorba Linda?

Anaheim Hills offers lower median prices ($1.1M-$1.15M) compared to Yorba Linda ($1.29M-$1.4M), making it more accessible for many buyers. Both communities share similar characteristics including excellent schools, family-friendly environments, and hillside settings. Anaheim Hills provides better proximity to major employment centers and freeways.

What is the price per square foot in Anaheim Hills?

The median price per square foot in Anaheim Hills is approximately $594 as of late 2025, representing a 2.8% increase from the previous year according to Redfin data.

Will mortgage rates drop below 6% in 2026?

According to Fannie Mae forecasts, 30-year mortgage rates may reach approximately 5.9% by Q4 2026. The Mortgage Bankers Association projects rates remaining near 6.1% through most of 2026. Dramatic rate drops are not widely expected, but modest improvement is possible if economic conditions allow.

What are the most expensive neighborhoods in Anaheim Hills?

The most expensive neighborhoods in Anaheim Hills include Hidden Canyon Estates and Belsomet, where homes regularly exceed $2 million and estate properties can reach $5-6 million or more. The Summit of Anaheim Hills represents a premium submarket with December 2025 median prices of $1.3 million.

Is it a buyer's or seller's market in Anaheim Hills in 2026?

The Anaheim Hills market in 2026 is moving toward balance, neither strongly favoring buyers nor sellers. Inventory remains limited at approximately 2.6 months of supply in Orange County overall, below the 5-6 months considered balanced. However, longer days on market and increased price reductions suggest buyers have slightly more leverage than in recent years.

Sources and References

Real Estate Data:

• Redfin Anaheim Hills Housing Market
• Homes.com Anaheim Hills
• Zillow Anaheim Hills Home Values
• Redfin The Summit of Anaheim Hills

Mortgage Rates:

• Freddie Mac Primary Mortgage Market Survey
• CBS News Mortgage Rates February 2026
• Bankrate Mortgage Rates

Market Forecasts:

• Orange County Housing Market Forecast 2026 - Home Buying Institute
• Orange County Real Estate Inc. 2026 Forecast
• First Tuesday Journal Orange County Indicators

Data current as of February 2026. Real estate markets fluctuate; verify current values with a licensed real estate professional.

About the Author

Brian Kidd is a real estate agent with Canyon Realty, serving Orange County families for over 20 years. Specializing in Anaheim Hills, Yorba Linda, and surrounding communities, Brian provides data-driven guidance for buyers and sellers navigating today's market.

CA DRE# 01901810