Santa Barbara Real Estate Market Report | Q1 2025 Overview + March Market Recap
A strong first quarter with signs of softening ahead
The first quarter of 2025 brought solid gains across the South Santa Barbara County real estate market. Total residential sales increased compared to Q1 2024, fueled by a busy January and steady buyer demand. However, March marked a shift in momentum. While pricing metrics remain strong, buyer activity has become more selective, and price reductions are on the rise—signaling a more cautious environment heading into Q2.
MARKET HIGHLIGHTS – Q1 2025 (Year-over-Year)
Total Sales Volume (Q1):
- 225 single-family homes sold | Avg Price: $4,196,362 (+25%) | Median Price: $2,795,000 (+27%)
- 86 condos/townhomes sold | Avg Price: $1,474,947 (+40%) | Median Price: $1,197,500 (+32%)
Cash Buyers: 41% of Q1 sales
MARCH 2025 SNAPSHOT
Following a brisk January and February, March held steady in terms of volume but revealed a softening in urgency. While overall pricing remained elevated, longer days on market and more frequent price reductions suggest that economic headwinds are beginning to influence buyer behavior.
March Sales Activity:
- 79 single-family homes sold | Avg Price: $4,340,670 (up 52% YoY) | Median Price: $2,827,000
- 32 condos/townhomes sold | Avg Price: $1,333,587 | Median Price: $1,187,500
- Inventory: 2.95 months of supply
ECONOMIC OUTLOOK
While Q1 numbers reflect strength on paper, the tone in the marketplace has shifted. Success this quarter came down to two key factors: strategic pricing and impactful presentation. We’re entering Q2 with a more reserved outlook due to inflation concerns, interest rate speculation, and stock market volatility, which are contributing to buyer hesitation and more selective behavior. Sellers should expect longer marketing times and be prepared to adjust pricing as needed. Buyers may find increased opportunity, especially with well-informed positioning.
At Knight Real Estate Group, we continue to provide our clients with expert guidance through every market condition. If you’re considering a move this year—or simply want to stay informed—reach out anytime for a strategic conversation.
Disclaimer: This report is based on available data and market trends as of 3/1/25. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | February 2025
Resilient Performance with Emerging Signs of Softening
Following an exceptionally active January, the South Santa Barbara County real estate market posted another strong month in February, with total sales volume rising 15% compared to the same time last year. However, momentum has begun to temper as we enter March, with early signs of buyer hesitation, longer days on market, and a growing number of price reductions—pointing to a shift in sentiment amid broader economic concerns.
MARKET HIGHLIGHTS – FEBRUARY 2025
Total Sales: 102 (+15% year-over-year)
Single-Family Homes
- Average Sales Price: $3,468,485 (▼18%)
- Median Sales Price: $2,665,625 (▲18%)
- Units Sold: 76
Condominiums & Townhomes
- Average Sales Price: $1,536,740 (▲50%)
- Median Sales Price: $1,450,000 (▲51%)
- Units Sold: 26
While single-family home prices show a decrease in average due to fewer ultra-luxury transactions this month, the median increase reflects continued strength in the mid-to-high-end market. The condo segment remains notably strong, both in price appreciation and sales activity.
MARKET DYNAMICS
- Cash Buyers: Represented 33% of February sales
- Inventory: 2.68 months of supply
- Notable Trend: Price reductions are increasing, and buyer activity has become more selective as economic uncertainty weighs on decision-making.
LOOKING AHEAD
The Santa Barbara market continues to benefit from its unique appeal, limited supply, and long-term value proposition. However, the environment is shifting. Interest rate concerns, government policy discussions, and stock market volatility are starting to impact consumer confidence.
We expect a more balanced spring market, with buyers gaining some leverage and sellers needing to price more strategically to capture attention.
KNIGHT REAL ESTATE GROUP
Our mission is to help you navigate every market—whether accelerating or adjusting—with clarity and confidence. If you’re thinking about buying, selling, or simply staying informed, we’re here to support your goals with experience-backed strategy and personalized service.
Let’s talk about how we can help you move forward this year.
Disclaimer: This report is based on available data and market trends as of 2/1/25. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | January 2025
The start of the year brought immense challenges to Southern California, reminding us of the power and resilience and adaptability of the human spirit and what is required in our industry.
The devastating Los Angeles wildfires have had a profound impact on individuals, families, and the real estate market alike. As people navigate the aftermath, many are re-evaluating their housing decisions—some opting to relocate, while others explore rebuilding options. Locally, the most pressing question has been: How have the LA fires impacted the Santa Barbara market?
The answer — many local buyers who had been waiting on the sidelines were motivated to secure a property in January, rather than delay their purchases. This spurred a significant increase in sales activity. Montecito, in particular, saw significant activity in January, with seven properties transacting over $10 million — primarily purchased by local buyers. Among those who lost their homes in LA and moved to Santa Barbara, most have opted to rent, with a strong preference for Montecito due to the highly regarded Montecito Union and Cold Spring school districts.
South Santa Barbara County Market Overview
The broader Santa Barbara real estate market started 2025 with notable growth when compared to January 2024:
Total sales volume: Up 15% to 98 transactions
Single-family home prices:
Average sales price: $4,822,622 (+51%)
Median sales price: $2,875,000 (+19%)
Condominium prices:
Average sales price: $1,575,549 (+66%)
Median sales price: $1,000,000 (+13%)
The sharp rise in the average and median single-family home prices was largely driven by the seven luxury sales exceeding $10 million (4 of which transacted over $20 million!).
Market Dynamics & Inventory
- Cash buyers remain dominant, accounting for 48% of all transactions in January
- Inventory levels remain tight, with just 2.62 months of supply
For deeper insights into the market’s performance, we invite you to explore the full report, provided with expert data and analysis by our trusted partners at Fidelity National Title.
We encourage you to explore recent sales and blog posts on our website for additional insights and updates. If you have any questions about market trends or are considering your next steps, we’re here to help.
Whether you’re planning to buy, sell, or simply stay informed, Knight Real Estate Group is your trusted partner every step of the way. Reach out to us today to discuss your real estate goals and how we can help you achieve success in the year ahead.
Disclaimer: This report is based on available data and market trends as of 1/1/25. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | December 2024
2024 was another strong year for the South Santa Barbara County real estate market. Double-digit growth in average prices and total sales volume highlighted the region’s ongoing appeal. A significant portion of transactions (41%) were cash purchases, demonstrating strong confidence in the market and the enduring value of Santa Barbara real estate. As we move into 2025, Knight Real Estate Group anticipates an active year for real estate, buoyed by sustained demand and competitive pricing strategies.
2024 Key Metrics at a Glance
Overall Market Performance
Average sales price: $2,893,929 (+11% YoY)
Median sales price: $1,794,000 (+6% YoY)
Single-Family Homes
Average price: $3,509,152 (+10% YoY)
Median price: $2,172,130 (+3% YoY)
Total sales: 894 units
Condos
Average price: $1,271,485 (+3% YoY)
Median price: $995,000 (+5% YoY)
Total sales: 339 units
Despite higher financing costs relative to the past decade, total sales volume increased 12% year-over-year to reach 1,233 units sold. Buyers adjusted their strategies in 2024, with cash transactions playing a prominent role in securing properties.
Key Market Trends
Turn-Key Properties in Demand: Homes that are updated, well-priced, and located in desirable neighborhoods often sold quickly and above asking price.
Challenging Market for Overpriced Properties: Homes requiring significant updates or listed at overly ambitious prices lingered on the market longer.
Inventory Levels: As of December, months of supply (MOS) was 2.17, reflecting a competitive sellers’ market.
Looking Ahead to 2025
The South Santa Barbara County real estate market remains resilient and well-positioned for another strong year. Competitive pricing, impeccable presentation, and strategic marketing will be critical for sellers aiming to achieve premium results in 2025. For deeper insights into the market’s performance, we invite you to explore the full report, provided with expert data and analysis by our trusted partners at Fidelity National Title.
We encourage you to explore recent sales and blog posts on our website for additional insights and updates. If you have any questions about market trends or are considering your next steps, we’re here to help.
Whether you’re planning to buy, sell, or simply stay informed, Knight Real Estate Group is your trusted partner every step of the way. Reach out to us today to discuss your real estate goals and how we can help you achieve success in the year ahead.
Disclaimer: This report is based on available data and market trends as of 12/1/24. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.