Santa Barbara’s Market Stays Strong in Mid-Summer
The Santa Barbara real estate market continued to outperform expectations in July 2025, with sales, prices, and overall activity trending upward despite higher borrowing costs nationwide. Both single-family homes and condos are attracting steady buyer interest, supported by increased inventory and strong demand for premium properties. As summer reaches its midpoint, Santa Barbara remains one of California’s most resilient and appreciating coastal markets.
July 2025 Local Market Highlights
Year-to-date sales of home estates and planned unit developments (PUDs) have reached 550 transactions, up 15.1% from 478 in 2024. The median sales price climbed to $2,440,000, a 12.3% year-over-year increase. When excluding Hope Ranch and Montecito, the median price stands at $1,995,000, still 5% higher than last year.
The average sold price is up 7.4% to $3,584,578, with the total dollar volume surging 23.6% to nearly $1.97 billion in 2025. July alone saw 78 sales, compared to 58 in July 2024—a 34.5% jump. The monthly median sales price hit $2,302,500, marking a 24.5% increase from the same month last year.
Inventory continues to expand, with 365 active listings (up 15.9%). The median list price has also risen 11.4% to $2,450,000. Even with more choices for buyers, the market remains competitive, with well-priced homes moving quickly, especially in the $2M–$4M range.
How Santa Barbara Compares to the National Housing Market
Nationwide, the housing market is growing at a slower pace. According to recent data from the National Association of Realtors, the median U.S. home price is up just over 4% year-over-year—a fraction of Santa Barbara’s 12.3% increase. Many metro areas are seeing longer days on market and more frequent price reductions as 30-year mortgage rates hover near 7%.
Unlike rate-sensitive markets, Santa Barbara’s luxury and second-home segments are less impacted by higher interest rates. Many buyers purchase with cash or significant equity, allowing the market to maintain strong pricing and sales velocity. The city’s combination of limited buildable land, desirable climate, and coastal lifestyle continues to attract both local and out-of-area buyers.
Looking Ahead: Late Summer and Fall 2025
While a modest seasonal slowdown is expected in late summer, the fundamentals suggest Santa Barbara will remain active through the end of the year. If the Federal Reserve follows through with anticipated interest rate cuts later in 2025, we could see a fresh surge of buyer activity in the fourth quarter, particularly from those who have been waiting for a shift in financing conditions.
With inventory climbing but still historically constrained in prime neighborhoods, and demand holding steady, Santa Barbara is well-positioned to remain one of the most stable and desirable housing markets on the West Coast. Unless there is a significant economic disruption, prices are likely to stay elevated, making 2025 another strong year for both sellers and investors in the region.
