Santa Barbara’s real estate market in early 2025 has shown resilience, but signs of softening are emerging. Here are some key trends:

  • Sales Volume: February saw a 15% increase in total sales compared to last year, but momentum slowed in March as buyer hesitation grew.
  • Home Prices: The median price for single-family homes rose 18%, while the average price dropped 18%, likely due to fewer ultra-luxury transactions. Condos, however, saw a 50% increase in average price.
  • Market Dynamics: Cash buyers accounted for 33% of February sales, and inventory stood at 2.68 months of supply. Price reductions are becoming more common as economic uncertainty weighs on buyers.
  • Cash Buyers Are Dominating: A whopping 33% of home sales were cash purchases in February, signaling confidence among affluent buyers.
  • Inventory & Price Reductions Are Worth Watching: With inventory rising to 2.68 months of supply, sellers may face more competition.
  • Forecast: The market remains attractive due to Santa Barbara’s unique appeal, but interest rate concerns and stock market volatility may shift dynamics toward a more balanced spring season.

Statistics and Charts below provided by Fidelity Title Company of Santa Barbara

Market Trends

1st Quarter 2025

March 2025

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Mark Danforth Lomas

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