Santa Barbara Real Estate Market Report | Q2 2025 Overview + June Market Recap
A Market in Transition
Total residential sales reached $1.21 billion, representing a 3.4% increase in transaction count over Q2 2024. The luxury market showed notable strength—June posted the highest number of $10M+ sales in over a year. However, mid-market activity has become more price-sensitive, and buyers across all segments are approaching with increased scrutiny. Homes that are not priced for current conditions are seeing longer time on market, more cancellations, and price reductions.
MARKET HIGHLIGHTS – Q2 2025
Single-Family Homes
241 sales | Average Price: $3,660,917 (-6.2%) | Median Price: $2,425,000 (-6.9%)
Condos/Townhomes
103 sales | Average Price: $1,434,370 (+5.9%) | Median Price: $1,027,000 (+2.2%)
Cash Buyers: Represented 35% of all Q2 sales; 40% in June
Inventory: 3.72 months of supply (highest level since late 2020
JUNE 2025 SALES ACTIVITY
Single-Family Homes
- 84 sales | Average Price: $3,263,066 | Median Price: $2,138,830
Condos & Townhomes
- 29 sales | Average Price: $1,429,585 | Median Price: $999,000
What’s Driving the Shift?
In April, the announcement of steep new tariffs contributed to heightened market volatility. Combined with persistent inflation, stock market swings, and rising insurance premiums, consumer confidence has weakened. Meanwhile, a growing supply of homes, paired with mortgage rates that remain elevated, has given buyers more room to negotiate and reduced the urgency that characterized the post-pandemic market.
Buyer Behavior in Today’s Market
Buyers are increasingly value-conscious. Move-in-ready homes, especially those that are staged and well presented, are still commanding attention and, in some cases, multiple offers. But properties requiring updates or priced above current expectations are lingering. Activity in the $3M-5M+ segment remains strong, particularly for well-positioned listings, but buyers are acting with greater discretion.
Opportunities & Takeaways
Despite mixed headlines, the Santa Barbara market remains fundamentally sound. Demand continues to be supported by limited inventory, desirable lifestyle factors, and a significant percentage of cash buyers. Still, selectivity is rising across all price points, and sellers should adjust expectations accordingly.
- Sellers: Prioritize strategic pricing, top-tier presentation, and flexibility.
- Buyers: Increased inventory and longer days on market may offer more leverage.
- Investors: Watch for mid-market listings where lifestyle value aligns with smart pricing.
At Knight Real Estate Group, we provide data-driven guidance tailored to every market condition. With over 20 years of experience navigating both strong and shifting markets, we know how to adapt with insight and strategy. While many agents have only worked in a prolonged seller’s market, we’ve helped our clients succeed through every turn of the cycle—with professionalism, clarity, and results.
If you’re considering a move, curious about your home’s current value, or simply want to better understand today’s landscape, we’re here to help.
Disclaimer: This report is based on available data and market trends as of 6/1/25. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | April 2025
A Market of Contrasts: Headwinds, Tailwinds, and Changing Buyer Behavior
Santa Barbara’s real estate market in April reflected a complex set of dynamics. Sales activity remained strong overall, with total transaction volume up 14% year-over-year. However, that momentum was uneven across price points. While the entry-level and mid-range segments remain active and, in some cases, competitive, the $4M+ luxury market has slowed, with buyers exhibiting greater caution in light of economic and policy uncertainty.
Rising interest rates, declining consumer confidence, an increasingly challenging insurance environment, and broader geopolitical tensions (including tariffs and inflationary pressures) are shaping today’s market. These factors have led many buyers—particularly at the high end—to proceed with more discretion.
MARKET HIGHLIGHTS – APRIL 2025 vs APRIL 2024
Total Sales: 127 transactions (▲14%)
Single-Family Homes
- 94 sold
- Average Price: $3,207,922 (▼13%)
- Median Price: $2,175,000 (▼4%)
Condos & Townhomes
- 33 sold
- Average Price: $1,454,360 (▲29%)
- Median Price: $1,049,000 (▼3%)
Cash Buyers: Represented 35% of April transactions
Inventory: Rose to 3.38 months of supply—the highest level since late 2020
BUYER PRIORITIES ARE SHIFTING
Today’s buyers are clearly prioritizing move-in ready, “turn-key” homes and are often willing to pay a premium for properties that deliver on style, quality, and condition. In contrast, listings that require updates or renovations are facing slower absorption rates and must be priced accordingly.
Buyers are less willing to stretch if they feel a home is overpriced relative to its condition—leading to a rise in price reductions across the board.
LOOKING AHEAD
As we head deeper into Q2, the market continues to adjust. The underlying demand for Santa Barbara real estate remains intact, but expectations are evolving. Sellers need to be more strategic than ever—both in pricing and presentation—to meet buyers where they are.
At Knight Real Estate Group, we continue to advise our clients with thoughtful, data-driven strategies tailored to current market conditions. If you’re thinking about buying or selling—or simply want to understand where the market is headed—let’s connect.
Disclaimer: This report is based on available data and market trends as of 4/1/25. Actual market conditions may vary, and individuals are encouraged to consult with real estate professionals for personalized advice.
Santa Barbara Real Estate Market Report | 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.