Santa Barbara’s housing market stayed strong in September, showing steady demand and impressive stability despite national uncertainty. A total of 73 homes sold last month, with a median price of $2.5 million and an average of $4.14 million.
Homes also sold quickly, averaging just 38 days on the market, nearly twice as fast as the national average. Compared to the same time last year, both sales volume and prices increased, while the number of days on market decreased. It’s a sign that buyers remain active and that well-priced listings continue to move.
How Santa Barbara Compares to the National Market
Nationwide, the story looks a little different. The median sale price across the U.S. hovered around $422,400, with existing-home sales rising approximately 2% from the previous year. Homes nationally spent about 62 days on market, and roughly 20% of listings saw price reductions, especially in the midrange price bracket.
Santa Barbara, meanwhile, remains a distinct market. Price reductions were rare, and homes sold at 98.4% of their list price—a strong indicator of confidence among sellers and continued demand from buyers seeking coastal property.
What’s Driving the Market
Nationally, several factors are shaping the real estate landscape:
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Mortgage rates eased slightly to around 6.3% for a 30-year fixed loan.
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The Federal Reserve cut rates in September and may do so again before the end of the year to support growth.
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Affordability is improving, though it remains a challenge in higher-cost regions.
Here in Santa Barbara, however, rate shifts don’t play as big a role. Many local buyers rely less on financing or purchase with cash, which helps insulate our market from national swings. That’s one reason Santa Barbara tends to stay steady, even when other regions cool.
Looking Ahead to Fall and Winter
Heading into the end of the year, Santa Barbara’s market looks poised to remain resilient. The luxury segment here tends to be less volatile, and demand from both local and out-of-area buyers remains strong.
Nationally, if rates continue to ease, we might see a small pickup in buyer activity — but limited inventory will keep things competitive. In Santa Barbara, prices are expected to remain stable heading into winter, with another potential surge in activity once spring arrives in 2026.
For now, Santa Barbara continues to stand out: a market that’s efficient, well-balanced, and still outperforming much of the country.
