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.
Santa Barbara Real Estate Market Report | April 2026
SANTA BARBARA REAL ESTATE OVERVIEW
April activity reflected a market that continues to stabilize heading deeper into the spring season.
Total sales increased modestly year-over-year, with 135 residential transactions closing across South Santa Barbara County, up 6% from April 2025. Single-family sales rose 5%, while condominium sales increased 9%, signaling continued buyer engagement across multiple price points.
The headline? April’s average pricing rose sharply year-over-year, though much of that increase was driven by a concentrated wave of luxury sales in Montecito rather than broad-based appreciation across the overall market. The average single-family sale price climbed 41% to $4.53M, fueled largely by upper-end activity in Montecito, which recorded 21 sales during April, including a notable concentration of high-value transactions that significantly influenced regional averages.
Importantly, this jump in average pricing does not necessarily indicate broad appreciation across all market segments. Rather, it reflects how strongly Montecito’s luxury market can impact county-wide statistics when upper-tier activity accelerates.
KELLY’S MARKET PERSPECTIVE
April’s numbers reinforce the importance of looking beyond headline statistics. While average pricing increased dramatically, much of that movement was concentrated in Montecito’s upper-end market. Outside of the luxury segment, the broader market remains steady and relatively balanced, with buyers continuing to show discipline around pricing, condition, and location. Well-prepared homes continue to perform strongest, particularly in neighborhoods where inventory remains limited and turnkey product is scarce.
APRIL 2026
Sales Activity
- Total Sales: 135 (Up 6%)
- Single-Family Sales: 99 (Up 5%)
- Condo Sales: 36 (Up 9%)
The spring market continues to build momentum, with activity remaining healthy across much of South Santa Barbara County.
PRICING BREAKDOWN
Single-Family Homes
- Average Price: $4,533,360 (Up 41%)
- Median Price: $2,030,000 (Down 7%)
Condos and Townhomes
- Average Price: $1,117,974 (Down 23%)
- Median Price: $965,000 (Down 8%)
The divergence between average and median pricing in the single-family segment highlights the outsized influence of Montecito luxury sales during April. Median pricing remained comparatively stable, suggesting less dramatic movement across the broader market.
MONTECITO SNAPSHOT
Montecito experienced a meaningful increase in activity during April, recording 21 sales and bringing year-to-date transactions to 57, nearly matching last year’s pace through the same period.
The luxury segment was particularly active:
- 14 Montecito sales closed above $10M year-to-date
- Montecito single-family average sale price reached $12.3M in April
- Approximately 71% of Montecito April transactions were cash purchases
This concentration of upper-tier activity played a major role in lifting South County average pricing overall.
INVENTORY AND BUYER DYNAMICS
Months of Inventory: 2.90 months of supply
Cash Buyers: 39% of April transactions
Average Days on Market:
- Single-Family: 44 days
- Condo/PUD: 28 days
These figures continue to point toward a market that remains competitive for well-positioned properties, while giving buyers slightly more time and flexibility compared to the intensity of prior years.
YEAR-TO-DATE PERSPECTIVE (JANUARY–APRIL)
Through the first four months of 2026, South Santa Barbara County recorded 462 total residential sales, up approximately 5% year-over-year.
Buyer demand continues to concentrate primarily within the $1M–$4M range, while luxury activity remains heavily centered in Montecito.
Cash transactions continue to represent a substantial portion of the market, accounting for approximately 39% of all April sales and more than 50 transactions month-to-date.
FINAL TAKEAWAYS | BEYOND THE NUMBERS
April demonstrated how significantly Montecito’s luxury market can shape regional pricing trends.
While average prices rose sharply, the broader South County market remains measured and relatively balanced. Demand persists across all price categories, though buyers continue to prioritize value, condition, and long-term quality.
The current environment continues to reward thoughtful preparation, strategic pricing, and strong market positioning.
PLANNING AHEAD
As we move further into the spring and early summer market, inventory is expected to increase gradually while buyer demand remains steady, particularly for turnkey homes in desirable locations.
At Knight Real Estate Group, we continue to help clients interpret market trends beyond the headlines, providing perspective grounded in both data and experience. If you are considering a move or would like insight into your home’s value and positioning in today’s market, we are always available to help.
Disclaimer: This report is based on available data and market trends as of 4/30/26. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.