A Strong Start to Summer in Santa Barbara
The Santa Barbara real estate market continued its strong performance through June 2025, defying national trends and broader economic uncertainty. Activity remains high across both single-family homes and condominiums, with steady buyer interest and growing inventory. As the summer season reaches its peak, Santa Barbara is distinguishing itself as one of the most stable and appreciating coastal markets in California.
Sales, Prices, and Inventory Trends
Year-to-date, home estate and PUD (Planned Unit Development) sales are up nearly 13% compared to the same period in 2024. The median sales price for these properties has climbed to $2,537,500, marking a 13.2% increase year-over-year. Condos are showing even sharper gains, with the median price rising nearly 19% to $1,151,504.
Inventory is growing, but demand is keeping pace with it. Active listings are up nearly 24%, and new listings have increased over 25% from June 2024. Even with more homes available, sellers are seeing strong results: homes are closing at 96% of their list price, on average. This suggests a competitive market, particularly in Santa Barbara’s high-end neighborhoods, such as Montecito, the Riviera, and Hope Ranch.
How Santa Barbara Compares to National Trends
National housing data tells a different story. Across the U.S., median home prices have increased about 4.5% year-over-year, a far slower pace than what we’re seeing locally. Higher mortgage rates—hovering near 7% for a 30-year fixed loan—have cooled many markets, particularly those heavily reliant on financing. Price reductions, slower sales, and extended time on market are becoming more common across the country.
By contrast, Santa Barbara real estate is less sensitive to interest rate fluctuations. Many local buyers purchase with cash or have substantial equity, insulating the market from some of the broader economic pressures. This dynamic helps sustain higher prices and keeps demand steady in the face of national headwinds.
Outlook for the Rest of 2025
We expect a typical seasonal slowdown in late summer, but it’s unlikely to be dramatic. If the Federal Reserve moves forward with interest rate cuts later this year, as many economists expect, buyer activity could increase again in the fourth quarter, particularly among those who have been waiting for a more favorable lending environment.
Santa Barbara’s combination of tight inventory, high demand, and premium lifestyle appeal continues to make it one of the most desirable markets on the West Coast. Barring any significant economic disruption, we anticipate pricing to remain strong and activity to stay healthy through the end of 2025.
