Santa Barbara Real Estate Market Report | August 2026
AUGUST 2026 | SANTA BARBARA REAL ESTATE OVERVIEW
August delivered another strong month for sales activity across South Santa Barbara County.
A total of 132 residential properties closed in August, up 18% compared with August 2025. Single-family sales increased 13% year-over-year, while condominium sales jumped 38%.
Pricing, however, was more mixed. Compared with August 2025, the average single-family sale price increased 7% to $3.33 million, while the median declined 4% to $2.15 million. Condominium pricing was stronger, with the average up 20% and the median up 37%.
Sales remain strong, but the market is becoming increasingly segmented.
Higher transaction volume is not translating into uniform price appreciation. Results vary considerably by property type, location, condition and price point, making the underlying trends more important than any single headline statistic.
KELLY’S MARKET PERSPECTIVE
Eight months into 2026, one of the clearest trends is that buyers remain active but are adapting to affordability and financing constraints.
The strength of the condominium market is particularly noteworthy. August condo sales increased 38% compared with August 2025, suggesting some buyers may be adjusting what they purchase rather than leaving the market altogether.
At the same time, parts of the single-family market are experiencing greater pricing pressure. This is particularly evident in the year-to-date data, where sales activity has increased even as median pricing has declined.
The distinction is not simply luxury versus entry level. Financing sensitivity is becoming an increasingly important dividing line. Buyers with substantial liquidity have greater flexibility, while financed buyers must weigh purchase price against the monthly cost of ownership.
AUGUST 2026 | YEAR-OVER-YEAR COMPARISON
Sales Activity
- Total Sales: 132 | Up 18% vs. August 2025
- Single-Family Sales: 99 | Up 13%
- Condominium Sales: 33 | Up 38%
Pricing
Single-Family Homes
- Average Price: $3,333,900 | Up 7%
- Median Price: $2,150,000 | Down 4%
Condominiums & Townhomes
- Average Price: $1,407,258 | Up 20%
- Median Price: $1,210,000 | Up 37%
The difference between average and median single-family pricing is worth noting. Higher-end transactions can significantly influence the average, while the median provides a better indication of movement across the broader market.
LUXURY MARKET SNAPSHOT
Luxury continues to operate differently from the broader market, and even within the upper end, performance varies by location.
In Montecito, 18 single-family homes sold during August. Looking at January through August, sales are down 15% compared with the same period in 2025. The year-to-date average price is up 7% to approximately $8.12 million, while the median is down 8% to $5.65 million.
Hope Ranch presents a different year-to-date picture. Sales are up 8%, the average price is essentially flat at +1%, and the median has increased 14% to approximately $7.04 million.
The contrast illustrates why broad “luxury market” conclusions can be misleading. Individual communities are producing distinctly different results.
INVENTORY & BUYER DYNAMICS
- Months of Supply: 3.10 months
- Cash Buyers: 35% of August transactions
- Average Days on Market: 45 days for single-family homes; 35 days for condominiums/PUDs
Only 16% of August sales closed above asking price, with much of that competition concentrated below $2 million.
This is also a market where condition matters. Buyers weighing today’s ownership and financing costs are generally less willing to absorb significant renovation expenses after closing. Well-prepared homes that are appropriately priced continue to have an advantage.
YEAR-TO-DATE PERSPECTIVE
January-August 2026 vs. January-August 2025
Through August, 989 residential properties sold across South Santa Barbara County, up 9% from the same eight-month period last year.
Single-Family Homes
- Sales: 712 | Up 7%
- Average Price: $3,521,445 | Down 3%
- Median Price: $2,147,500 | Down 9%
Condominiums & Townhomes
- Sales: 277 | Up 13%
- Average Price: $1,271,003 | Down 7%
- Median Price: $1,060,000 | Up 1%
- All-Cash Sales: 39% of year-to-date transactions
The eight-month numbers provide a clearer picture than any individual month: more properties are selling than last year, but pricing trends vary considerably by segment.
EIGHT MONTHS IN | WHAT THE TRENDS TELL US
Several themes have become increasingly clear:
Sales activity remains healthy. Total transactions are up 9% year-to-date, with condominium sales growing faster than single-family sales.
Affordability is influencing buyer choices. Stronger condominium activity may reflect buyers adjusting property type or price point in response to higher ownership costs.
Single-family pricing is under greater pressure. Year-to-date single-family sales are up 7%, while the median price is down 9%. Within Santa Barbara itself, single-family sales are up 12%, while the median is down 23%.
Luxury performance varies significantly by submarket. Montecito and Hope Ranch are moving in different directions, reinforcing the importance of looking beyond regional averages.
Taken together, the data points to a market that is active but increasingly differentiated. Property type, location, condition and financing sensitivity are playing a larger role in determining outcomes.
FINAL TAKEAWAYS | BEYOND THE NUMBERS
August reinforces an encouraging fundamental: buyers are still in the market.
Nearly 1,000 residential properties changed hands through the first eight months of 2026, and sales are running ahead of last year’s pace. At the same time, buyers have become more value-conscious, particularly within the single-family market.
For sellers, that puts greater emphasis on accurate pricing and preparation. For buyers, greater differentiation among properties is creating more opportunity to negotiate and evaluate value carefully.
LOOKING AHEAD | INTEREST RATES
Interest rates add another variable as we move into the fall market.
The Federal Reserve’s recent quarter-point rate increase does not translate directly into an equivalent increase in mortgage rates, but it reinforces a higher-rate environment for financed buyers. Purchasing power and monthly payment are likely to remain important considerations as buyers evaluate their options. That may further widen the differences we are already seeing between market segments. More attainable properties could continue to benefit from demand, while portions of the single-family market may face greater price sensitivity.
At Knight Real Estate Group, we believe the most useful market analysis goes beyond the averages. In today’s Santa Barbara real estate market, understanding the specific property, neighborhood and buyer pool matters more than ever.
Disclaimer: This report is based on available data and market trends as of 8/31/26. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | July 2026
JULY 2026 | SANTA BARBARA REAL ESTATE OVERVIEW
July delivered another month of solid sales activity across South Santa Barbara County.
A total of 131 residential properties closed, up 9% year-over-year. Single-family sales increased 6%, while condominium sales rose 18%. At the same time, single-family pricing softened, with both average and median sale prices declining from July 2025.
The headline? Sales activity remains healthy, but increased transaction volume is not translating into broad-based price appreciation.
That distinction matters. Buyers are participating in the market, but results vary significantly by neighborhood, property type, condition, and price point.
KELLY’S MARKET PERSPECTIVE
Seven months into 2026, the market appears to be settling into a more sustainable rhythm.
Since March, monthly sales volume has remained remarkably consistent, hovering around 130 transactions per month. That stability is encouraging and suggests underlying demand remains intact.
What has changed is buyer behavior. Buyers generally have more time to evaluate their options and are less willing to overlook condition or stretch beyond perceived value.
For sellers, this makes accurate pricing and strong presentation especially important. The first weeks on the market continue to carry the greatest opportunity to capture attention and negotiating leverage.
JULY 2026 | SALES ACTIVITY
Total Sales: 131 (Up 9%)
Single-Family Sales: 91 (Up 6%)
Condominium Sales: 40 (Up 18%)
The increase across both property types reflects continued buyer engagement throughout South Santa Barbara County.
JULY PRICING BREAKDOWN
Single-Family Homes
- Average Price: $3,361,886 (Down 15%)
- Median Price: $2,200,000 (Down 9%)
Condominiums & Townhomes
- Average Price: $1,118,039 (Up 3%)
- Median Price: $1,035,000 (Up 16%)
Single-family pricing moved lower despite increased sales volume, while condominium pricing strengthened during July. As always, one month’s pricing should be viewed within the context of the longer-term trend.
LUXURY MARKET SNAPSHOT
Montecito recorded 14 single-family sales in July, with an average sale price of approximately $7.59 million and a median of $5.45 million.
Year-to-date, however, Montecito single-family sales remain well below 2025 levels. That contrasts with stronger transaction growth in Santa Barbara, Goleta, and Carpinteria and continues the geographic shift we have watched throughout the year.
INVENTORY & BUYER DYNAMICS
Months of Inventory: 3.06 months
Cash Buyers: 35% of July transactions
Average Days on Market
- Single-Family: 40 days
- Condominium/PUD: 25 days
Inventory remains relatively balanced. Buyers have more choice than they did during the pandemic-era market, but desirable, well-priced homes can still move quickly.
YEAR-TO-DATE PERSPECTIVE | JANUARY–JULY 2026
Through July, South Santa Barbara County recorded 857 residential sales, up 8% year-over-year. At the same time, both the overall average and median sale price are down 5%.
Overall Market
- Average Sale Price: $2,897,131 (Down 5%)
- Median Sale Price: $1,775,000 (Down 5%)
- Cash Sales: 40%
Single-Family Homes
- Sales: 613 (Up 7%)
- Average Price: $3,551,734 (Down 4%)
- Median Price: $2,145,000 (Down 12%)
Condominiums & Townhomes
- Sales: 244 (Up 10%)
- Average Price: $1,252,575 (Down 9%)
- Median Price: $1,027,500 (Down 6%)
The year-to-date numbers show a market with higher transaction volume but more disciplined pricing.
SEVEN MONTHS IN | WHAT THE TRENDS TELL US
Sales Activity Has Stabilized
The year began slowly, but sales accelerated through the first quarter and have since settled into a consistent range. From March through July, South County has recorded roughly 130 transactions per month.
That consistency points to a market that is functioning normally despite ongoing economic uncertainty.
Pricing Has Normalized
Monthly averages have swung throughout the year as luxury activity moved in and out of the market. The seven-month data provides a clearer picture.
Overall average and median prices are each down approximately 5% year-over-year, while the single-family median is down 12%. This is best understood as a normalization after several years of extraordinary appreciation, not a broad market decline.
Activity Is Shifting by Location
The strongest year-to-date sales growth has occurred outside Montecito. Santa Barbara single-family sales are up 17%, and condominium sales are up 24%. Goleta single-family sales are up 11%, while Carpinteria single-family transactions are up 24%. By comparison, Montecito single-family sales are down 23%.
This is another reminder that county-wide statistics can obscure meaningful differences between individual communities.
NATIONAL PERSPECTIVE | A MARKET RETURNING TO BALANCE
The national housing outlook offers useful context for what we are seeing locally. Mortgage rates are expected to remain broadly in the 6% to 6.5% range through the end of 2026, with only modest easing anticipated if inflation improves.
At the same time, national home prices are moderating rather than collapsing. Current forecasts call for approximately 1.7% appreciation in 2026, with most economists not anticipating a national price decline.
Perhaps the most relevant national takeaway is also the simplest: local market conditions matter more than national headlines.
FINAL TAKEAWAYS | BEYOND THE NUMBERS
Seven months into 2026, the South Santa Barbara County market is showing resilience and greater balance.
Sales volume is higher than last year, while softer pricing confirms that buyers have become more deliberate. For sellers, success increasingly depends on preparation, presentation, and pricing accurately for today’s market.
For buyers, greater choice and a more measured pace are creating opportunities that were difficult to find just a few years ago.
PLANNING AHEAD
As we move toward the fall market, we expect activity to remain steady while results continue to vary meaningfully by neighborhood, condition, and price point.
Mortgage rates may ease modestly, but current forecasts do not suggest a dramatic change in the financing environment. Rather than waiting for perfect conditions, buyers and sellers are likely to benefit most from decisions grounded in current local data and their individual circumstances.
At Knight Real Estate Group, our role is to look beyond the headline statistics and help clients understand what the market means for their specific property and goals. If you are considering buying, selling, or simply planning ahead, we are always available to provide thoughtful, data-driven guidance.
Disclaimer: This report is based on available data and market trends as of 7/31/26. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | Q2 2026 Overview + June Market Recap
SANTA BARBARA REAL ESTATE OVERVIEW
The second quarter of 2026 confirmed what May’s data began to suggest: transaction volume remains strong, even as pricing works its way toward a more sustainable footing.
Residential sales across South Santa Barbara County totaled 399 transactions in Q2 2026, up 9% year-over-year. Single-family sales led the way, rising 10% to 290 closings, while condominium sales increased 8% to 109, a notable shift from the condo softness we saw earlier in the year.
Pricing told a more complicated story. The average single-family sale price jumped 21% to $3,877,315, but the median slipped 2% to $2,147,500. That gap between average and median is the clearest signal in this quarter’s data: a concentration of high-value transactions, particularly in Montecito, pulled the average sharply higher without lifting the broader market. June alone saw Montecito’s luxury segment post a median price of $7,900,000 — the highest of the year — underscoring just how much influence a relatively small number of ultra-high-end sales can have on county-wide statistics.
Condominiums moved in the opposite direction on price, with the average down 8% to $1,293,544 and the median down 4% to $982,000, suggesting continued buyer discipline in that segment.
KELLY’S MARKET PERSPECTIVE
This quarter reinforces a theme we’ve been tracking all year: headline averages and real market conditions are telling two different stories. Montecito’s luxury activity continues to have a strong impact on county-wide numbers, while the broader market outside the luxury tier is moving forward with caution.
We’re increasingly seeing homes that sold at peak-market prices in early 2020 come back on the market and trade for less than what they paid. This dynamic is playing out selectively rather than across the board. Turn-key homes with high-end finishes continue to hold their value and command a premium as buyers are willing to pay for move-in-ready condition. Homes requiring updating, on the other hand, are selling at a discount, as buyers show little appetite to take on deferred maintenance or renovation risk.
Pricing strategy remains the single most important lever sellers have right now.
Q2 2026 SALES ACTIVITY
- Total Sales: 399 (Up 9%)
- Single-Family Sales: 290 (Up 10%)
- Condominium Sales: 109 (Up 8%)
Both segments posted volume gains this quarter, a sign that buyer demand remains healthy even as pricing normalizes.
PRICING BREAKDOWN
Single-Family Homes
- Average Price: $3,877,315 (Up 21%)
- Median Price: $2,147,500 (Down 2%)
Condominiums & Townhomes
- Average Price: $1,293,544 (Down 8%)
- Median Price: $982,000 (Down 4%)
The widening gap between average and median single-family pricing is the story of the quarter — it points to luxury concentration rather than broad appreciation.
LUXURY SNAPSHOT
Montecito’s luxury segment was the defining force behind Q2’s average-price gains.
- Montecito’s median sale price hit $7,900,000 in June, the highest of 2026 to date.
- A cluster of high-value closings during the month pulled Q2 county-wide averages meaningfully higher.
- Luxury activity remains healthy but continues to represent a distinct market segment from the broader South County trend.
INVENTORY & BUYER DYNAMICS
- Months of Inventory: 3.12 months
- Cash Buyers: 41% of Q2 transactions
- Homes Sold Above List Price (June): 23%
Inventory tightened slightly compared with earlier in the year, and nearly a quarter of June’s sales went above asking, a sign that well-priced, well-prepared listings are still generating real competition even as the broader pricing environment cools.
YEAR-TO-DATE PERSPECTIVE (JANUARY–JUNE 2026)
Through the first half of 2026, South Santa Barbara County recorded total sales up 7% year-over-year, while pricing continued to normalize. The year-to-date average sale price was down 4% to $2,936,898, and the median was down 5% to $1,797,500.
Single-Family Homes
- Total Sales: 522 (Up 7%)
- Average Price: $3,584,830 (Down 2%)
- Median Price: $2,147,500 (Down 12%)
Condominiums
- Total Sales: 204 (Up 9%)
- Average Price: $1,278,954 (Down 11%)
- Median Price: $1,027,500 (Down 11%)
The year-to-date figures paint a more consistent picture than Q2 alone: sales volume is up meaningfully across both segments, while pricing is settling back from the highs of recent years. That combination points to a market with real, sustained buyer demand, but one where buyers are no longer willing to stretch the way they did during the peak.
FINAL TAKEAWAYS | BEYOND THE NUMBERS
Q2 2026 makes clear that South County’s market is bifurcating. At the top end, Montecito’s luxury segment continues to post standout numbers that flow through to county-wide averages. Below that tier, the market is more measured, rewarding turn-key, well-presented homes while pushing back on properties that need work or are priced with yesterday’s market in mind. That’s not a reason for concern, but it is a reason for a clear-eyed pricing strategy.
PLANNING AHEAD
With inventory still relatively tight at just over three months of supply, well-prepared sellers continue to have an opportunity, particularly for turn-key properties where buyer competition remains real. For homes that need updating, realistic pricing from the outset will matter more than ever.
At Knight Real Estate Group, our focus remains on helping clients read past the headline numbers to understand what’s actually happening in their specific segment of the market, and to price and position accordingly.
Disclaimer: This report is based on available data and market trends as of 6/30/26. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | May 2026
SANTA BARBARA REAL ESTATE OVERVIEW
May reflected a market that continues to find its footing as we move into the summer selling season.
Residential sales remained healthy across South Santa Barbara County, with 134 transactions closing during the month, up 7% year-over-year. Single-family home sales increased 16% in May, while condominium sales declined 15%, continuing the shift toward detached homes seen over recent months.
The headline? Pricing appears to be stabilizing, though Montecito’s luxury market continues to have an outsized influence on county-wide statistics. The average single-family sale price increased 7% to $3.36 million, driven largely by upper-end transactions in Montecito. During May, Montecito recorded 17 single-family sales, including several significant luxury closings that elevated regional averages.
Importantly, this increase should not be interpreted as broad appreciation across all market segments. Rather, it illustrates how a relatively small number of luxury transactions can materially influence South County pricing.
KELLY’S MARKET PERSPECTIVE
May’s numbers reinforce the importance of looking beyond headline statistics. Today’s buyers remain focused on value, condition, presentation, and location. While average pricing improved during the month, much of that movement occurred within the luxury segment. Outside of the upper end, the broader market continues to operate with discipline, rewarding homes that are thoughtfully prepared, competitively priced, and move-in ready.
We’re also beginning to see some homeowners who purchased near the peak of the market discover that today’s buyers are less willing to stretch on price. Strategic pricing has become increasingly important, particularly as inventory gradually expands.
MAY 2026 SALES ACTIVITY
Total Sales: 134 (Up 7%)
Single-Family Sales: 100 (Up 16%)
Condominium Sales: 34 (Down 15%)
The market continues to demonstrate healthy demand, particularly within the single-family segment, while condominium activity has moderated compared with last year.
PRICING BREAKDOWN
Single-Family Homes
- Average Price: $3,360,386 (Up 7%)
- Median Price: $2,312,500 (Up 1%)
Condominiums & Townhomes
- Average Price: $1,300,681 (Down 4%)
- Median Price: $1,049,500 (Down 9%)
The relatively stable median price, compared with the stronger average price, reinforces that luxury transactions continue to skew regional averages more than they reflect broad market appreciation.
LUXURY SNAPSHOT
The luxury segment remained a primary driver of South County pricing during May.
- 17 single-family sales closed during the month.
- 18 properties have sold above $10 million year-to-date.
- Approximately 48% of May transactions were cash purchases.
Luxury demand remains healthy, but it represents a distinct segment of the market that should be viewed separately from broader South County trends.
INVENTORY & BUYER DYNAMICS
Months of Inventory: 3.81 months
Cash Buyers: 48%
Average Days on Market
- Single-Family: 30 days
- Condominium/PUD: 52 days
Inventory remains balanced, providing buyers with more options while still rewarding sellers who enter the market with a thoughtful pricing and marketing strategy.
YEAR-TO-DATE PERSPECTIVE (JANUARY-MAY 2026)
The year-to-date data tells a more balanced story than May alone. Through the first five months of 2026, South Santa Barbara County recorded 596 residential sales, up 6% compared with the same period last year. Single-family transactions increased 6%, while condominium sales rose 4%. Pricing, however, continues to normalize.
Year-to-date:
Single-Family Homes
- Average Price: $3,553,831 (Down 6%)
- Median Price: $2,155,000 (Down 17%)
Condominiums
- Average Price: $1,238,670 (Down 14%)
- Median Price: $1,049,000 (Down 10%)
This divergence between sales activity and pricing suggests that buyer demand remains healthy, but purchasers continue to demonstrate greater price sensitivity than we’ve seen over the past several years.
Cash transactions continue to represent a significant portion of the market, accounting for 41% of all year-to-date sales.
FINAL TAKEAWAYS | BEYOND THE NUMBERS
The market continues to transition toward a healthier balance between buyers and sellers.
Transaction volume remains strong, but today’s buyers are making more deliberate decisions and placing greater emphasis on value, condition, and location. We’re also beginning to see some properties purchased during the peak of the market trade below owners’ expectations, reinforcing that pricing strategy matters more than ever.
While the luxury market continues to influence regional averages, the broader South County market remains stable, measured, and increasingly driven by fundamentals rather than momentum.
PLANNING AHEAD
As we move into the summer market, inventory is expected to continue building gradually, creating additional opportunities for buyers while increasing competition among sellers. For homeowners considering a sale, preparation has become one of the strongest competitive advantages. Properties that are thoughtfully presented, strategically priced, and professionally marketed continue to outperform the market.
At Knight Real Estate Group, our focus remains on helping clients interpret the data beyond the headlines, providing clear guidance rooted in experience, market knowledge, and long-term strategy.
Disclaimer: This report is based on available data and market trends as of 5/31/26. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.