Welcome to Santa Barbara. How’s the housing market doing? How can we have more choices of homes for sale and fewer new listings at the same time? And how can we balance quality of life and housing?
In the first three months of this year, there were 336 new homes for sale listed in the Santa Barbara Association of REALTORS® (SBAOR) Multiple Listing Service (MLS).
The same time last year, we had 361 new homes for sale. So, year to date, new listings were down 7 percent compared to the same time last year (from 361 in Q1 2025 to 336 in Q1 2026).
At the same time, the total number of all homes for sale at the end of March 2026 increased to 454.
So today, buyers who are ready to purchase have had a few more homes to compare and choose from, even with fewer brand-new to market options.
At the same time, for homeowners and sellers coming off the sidelines, the data shows continued interest as more homes sold in March 2026 than any other month in the past year.
The result is a more balanced market that feels like it has more options, even without a surge in new supply.
Market Position: Sellers’? Balanced? Buyers’?
Last year, I noted the Santa Barbara South Coast market seemed to be shifting toward a more balanced environment. Not dramatically, but noticeably, especially compared to the pre-COVID pace. That is because we were also seeing statistically longer days on the market (DOM). That’s the time it takes a home to sell.
During the pandemic, with multiple offers over asking, homes often sold in 14 days or less. Buyers had to be ready and act quickly.
During the first three months of 2025, average days on market rose to 53. In March 2026, DOM was 66.
Strategic pricing discussions are important for both sellers and buyers, early and often. When a home has been for sale more than 30 days in our local market, that is typically when price adjustments become more common.
The Sold Price to List Price (SP/LP) metric tells the story as well. Homes can sell at, above, or below list price. Over the past year, homes on the market 30 days or longer have been selling, on average, at 93-96 percent of their list price, depending on micro-neighborhood, condition, days on market, and overall positioning. Those that sold in less than 30 days were more likely to go at or above asking price.
Home Prices
Year to date, 94 single-family homes have sold, with a median sales price of $2,227,500.
Without Hope Ranch and Montecito, the median sales price is $1,937,500.
Last year, during the same first 90 days of 2025, fewer homes sold — just 72.
What’s Happening Right Now
The median home price is down compared to this time last year, while also high relative to pre-pandemic levels.
Properties are staying on the market long enough for buyers to compare and, in some cases, wait.
If a home is not well prepared or is priced optimistically, buyers currently have a little more time to evaluate their options.
This isn’t a market that is currently driven by significantly more inventory. It’s a market shaped by how many qualified buyers are looking, how long homes remain available, and how thoughtfully both sides are making decisions.
In a market like this, outcomes are shaped by preparation and understanding micro-neighborhood trends. Homes that are well prepared and aligned with buyer expectations are moving efficiently. Others are simply taking longer to find the right match. Moreover, buying and selling in Santa Barbara is often a long-term decision, which contributes to a more measured pace.
Local and National Factors
National headlines continue to influence behavior as well. Interest rates, global war, stock market affecting down payment cash available for closing, and job uncertainty can lead to “wait and see” decisions.
Locally, potential housing provider and tenant regulations, short-term rental considerations, and discussions around new housing developments all impact our real estate market, affordability, and quality of life.
Santa Barbara Lifestyle & Future Impacts
In South Santa Barbara County, many of us cherish our Mediterranean climate, small communities, mountains and ocean, and we share responsibility for preserving both quality of life and affordable housing for the next generations.
With global events such as the 2026 FIFA World Cup bringing increased attention to our region, Santa Barbara may see more visitors. While the immediate economic impact is on hospitality and tourism, these moments can create even more familiarity with our area.
There’s always a balance between welcoming people and preserving what makes our community special. In my work, and many of my colleagues, we strive to be thoughtful about helping people not just arrive, or sell a home, but truly understand how to be part of our local community and make a positive impact, giving more than taking away.
Closing Perspective
The housing conversation in Santa Barbara goes beyond pricing, inventory, and days on market.
It also includes where and how homes can be built, the people behind this work, and how to support the full community who live here.
Data for this article was compiled by the Santa Barbara Multiple Listing Service and analyzed by members of the Statistical Review Committee of the Santa Barbara Association of REALTORS®. Kathleen Rogers is a full-time real estate advisor with eXp Luxury Realty. Kathleen can be reached at (805) 284-3900 and @WelcometoSantaBarbara.
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