A strong finish to a confident year
Santa Barbara real estate wrapped 2025 with real momentum. December is usually quieter by nature, but even with the holiday slowdown, the market stayed active and prices held firm. The bigger headline is the full-year picture: more sales, more volume, and a market that continued to reward smart pricing and strong presentation.
December 2025: a healthy close to the year
December posted 71 closed sales and about $190.7M in sold volume. The median sale price finished at $1.85M, with an average sale price near $2.69M. Buyers took a little more time (about 42 days on market), and sellers still averaged roughly 95% of list price, which is a solid indicator that demand didn’t disappear, it just got more selective.
The full-year story: more movement, higher prices, bigger volume
Zooming out, 2025 closed with 956 total sales, a meaningful jump over 2024. The year-to-date median sales price rose to about $2.33M, and total sold volume reached roughly $3.45B. That’s not a market “hanging on.” That’s a market expanding, even with buyers being more thoughtful than they were in the frenzy years.
How Santa Barbara compared to the rest of the country
Nationally, a lot of markets spent 2025 in “wait and see” mode. Higher borrowing costs kept many buyers rate-sensitive, inventory changes were uneven, and sellers in plenty of cities had to work harder to get deals across the finish line. Santa Barbara moved differently. We’re still a lifestyle market with limited supply, and we also have a buyer pool that often brings cash, equity, or strong down payments, which cushions us from the day-to-day mortgage rate drama.
What this means as we head into 2026
The early weeks of 2026 will likely start calm, then pick up fast as we approach late winter and spring. If rates ease even a bit, the sidelines crowd tends to re-enter quickly, and that’s when competition tightens. The playbook stays the same: sellers win with correct pricing and great presentation, and buyers win with preparation and speed when the right home shows up.
If you’re considering a move in 2026, let’s talk now while the market is quieter. I can give you a clear value range, a realistic timing plan, and a strategy that aligns with your goals, whether you’re selling, buying, or keeping options open.
End-of-year FAQ
Did Santa Barbara slow down at the end of 2025?
December cooled seasonally, but the year finished strong overall, with steady demand and solid sales volume.
Are prices dropping in Santa Barbara?
Not broadly. Pricing stayed firm overall, and the year ended with a higher median than 2024.
How is Santa Barbara different from the national market?
Many U.S. markets are more sensitive to mortgage rates. Santa Barbara tends to be more insulated because of limited supply, lifestyle demand, and a stronger share of equity-rich or cash buyers.
Is early 2026 a good time to sell?
It can be, especially if you’re priced correctly, and you hit the market before spring inventory builds. Fewer competing listings can work in your favor.
Should buyers wait for 2026?
Waiting can mean more competition later if rates ease. Buying earlier can offer a quieter playing field, but the key is being ready when the right home appears.
