Happy Thanksgiving, what a great time of year! It’s fun to finally have some weather — and all the festivities of the season ahead.

So, what’s happening in the Santa Barbara real estate market? This market is hard to sum up in a few words, but here’s where things stand.

Overall, this market is neither hot nor cold. Let me explain.

The Data at a Glance

• Total Sales Continue to Outpace 2024
• Inventory Levels have leveled out after months of Growth
• Home Values Remain Stable

Let’s dig a little deeper.

October Sales Snapshot

Sales in October increased by 19% compared to the same month in 2024, marking an encouraging trend. In fact, sales have outperformed 2024 in eight of the past ten months.

We continue to climb out of the record-low sales of 2023 and through the first 10 months of 2025, we are outpacing 2024 by 11%.

• 2023: 1,103 sales
• 2024: 1,237 sales
• 2025 (projected): likely 1,350+ if trends hold

We still have some ground to cover, but a steady, gradual improvement is a healthy sign.

Inventory

Early in 2025, the inventory of available properties rose consistently, peaking in the 380s by July. Since then, levels have flattened and even begun to dip back down some—partly due to seasonality, and partly due to a more balanced relationship between supply and demand.

As of November 18, there are 331 active listings between Carpinteria and Goleta.

Overall, having inventory levels stabilize is an encouraging sign of a more balanced market.

Values

The 2025 median home price sits at $2,350,000.  Home values overall have remained stable.  We have seen prices in our entry-level segment stay strong and improve slightly over last year, but at the higher price points, there has been more room for negotiation.

That said, the market is far more property-specific. Many homes are sitting longer, and with less competition per listing, buyers have more negotiating power than they’ve had in recent years.

Final Thoughts

So why is the market hard to summarize or neither hot nor cold? Homes aren’t flying off the shelf, but they’re not languishing either. It’s selective, a little fickle, and sometimes more unpredictable market than we would like.

A colleague of mine likes to say, “Price matters.” It always has, but now more than ever.

For example, six months ago, we competed for a listing we didn’t get (always disappointing). The owners believed the home was worth around $2M based on its size, but our analysis placed it closer to $1.5M–$1.6M due to condition. It listed at $1.9M and sat until several price reductions brought it to $1,595,000 — and only then did it go under contract.

Buyers are active, but with today’s higher interest rates, elevated home prices, and the rising cost of ownership, they’re approaching purchases with more scrutiny.

Real estate remains dynamic, and we love keeping you informed. If you have questions about the market, your home, or your plans, we’re always here to help.

Thanks for reading — and as always, don’t hesitate to reach out!

THE HIGH & LOW

October 2025 Highest Sale  | 7oo Picacho Ln, Montecito |  Sold for $60,000,000

October 2025 Lowest Home Sale  | 4621 7th Street, Carpinteria |  Sold for $995,000

THE STATS

Jan – Oct 2025

• Total Sales:  1,156 in ’25  vs  1,045 in ’24  |  UP 11%
• Total Home Sales:  843 in ’25  vs  753 in ’24  |  UP 12%
• Total Condo Sales:  313 in ’25  vs 292 in ’24  |  UP 7%
• Median Home Price:  $2,350,000 in ’25  vs  $2,209,000 in ’24  |  UP 6%
• Median Condo Price:  $1,075,000 in ’25  vs  $998,500 in ’24  |  UP 8%
• Sales Above $8M:  60 in ’25  vs  53 in ’24  |  Up 13%

October 2025

• Total Sales:  135 in ’25 vs 113 in ’24  |  UP 19%
• Pending Sales:  139 in ’25 vs 97 in ’24  |  UP 43%
• Total Off-Market Sales:  15 Sales  |  11%
• Total Cash Sales:  50 Sales  |  37%
• Average 30-Year Fixed Rate Mortgage: 6.36% as of Nov. 21, ’25