While national headlines highlight rising interest rates, affordability concerns, and cooling real estate activity, the Santa Barbara real estate market continues to show impressive strength. Since the start of 2025, our region has experienced steady growth, consistent buyer demand, and market stability, proving that Santa Barbara operates independently from broader economic trends.
The average home price in Santa Barbara has increased to $3.7 million, a 5.5% gain over last year. The median home price has grown more, up 17.6% to $2.65 million. When excluding Montecito and Hope Ranch, the average cost is still a strong $2.58 million, with the median at $2.047 million. This points to widespread buyer activity in the luxury market and across all property types.
We’ve also seen meaningful growth in sales volume. A total of 391 homes sold year-to-date, marking a 15.7% increase from 2024. Total dollar volume reached $1.435 billion, up 22%—a clear reflection of confidence from both local and relocating buyers.
In comparison, many metro areas like San Francisco, Austin, and Seattle face price softening and reduced sales. However, Santa Barbara continues to stand out with limited inventory, a high quality of life, and strong demand from affluent buyers seeking long-term stability and investment potential in a coastal California market.
If you’re considering buying or selling in 2025, this data shows now may be the right time. I’m here to provide insight and strategy tailored to your real estate goals.
