The beauty, grace, and vitality that define Santa Barbara South Coast living are undeniable. As a result, desirability among eager buyers to make Santa Barbara their home remains constant.
At the start of 2026, we remain in a sellers’ market; however, recent trends have evened the playing field somewhat for buyers, with many homes taking longer to sell and fewer multiple offers. For well-located, move-in-ready, and market-priced properties, buyers still must be prepared for competition.
In short, our local market is seeing steady buyer demand, stabilization of prices, and indications of long-term market health.
Let’s Review the Chart ~
2025 MLS Market Activity
Included here is a market snapshot for year-end 2025, as reported through the Santa Barbara Multiple Listing Service. As you will see, all data points are up from one year ago — including median price, number of sales, and available inventory.
Median Price
The median price is one of the most commonly used data points in the real estate market. It is important to note that fluctuations in the median are not an indication of the rise or fall in the value of a specific home, but rather an indication of changes in overall market activity.
The median can be skewed higher or lower if there is a sharp increase or decrease in either high-end or entry-level home sales. The median price for the South Coast at the end of 2025, for houses and PUDs, was $2,333,237, an increase of 8.5% from one year ago. (A “PUD” is a unit within a planned unit development and is governed by a homeowners association.)
Months of Inventory
Months of Inventory (MOI) is a helpful data point used to illustrate market momentum. MOI, often referred to as market velocity, shows the current pace of sales by dividing the number of active listings by the number of properties in escrow but not yet closed. This statistic is particularly useful in quantifying, in real time, buyer demand levels and overall confidence in investing in real estate. As a general rule of thumb, a market with less than three months of inventory is indicative of an active sellers’ market.
As shown in the chart, including luxury price ranges, we currently have 2.9 months of inventory. Statistically, this means that at the current pace of sales — assuming no new listings — it would take only three months for Santa Barbara to sell out! From a practical standpoint, however, because the South Coast market comprises several micro-markets by geography and price range, each sub-market will perform differently.
Inventory Levels
Much has been reported nationally about increasing inventory, which is also true for our community. However, in the limited-supply Santa Barbara South Coast market, we rarely have enough choices to show buyers across all market segments.
As shown in the chart, at the end of December 2025, there were only 216 available properties for sale in the MLS. This includes houses, PUDs, and condos from Carpinteria to Goleta, across all price ranges. One year earlier, at the end of 2024, there were 176 properties available for sale. To put this into perspective, ten years ago, inventory levels were typically in the 400 range.
Neighborhood Performance:
Goleta
For buyers seeking homes in the $1–$1.5 million range, Goleta remains highly competitive, with many properties selling within the first few weeks — and some within days. With a smaller percentage of higher-end properties, Goleta attracts both entry-level buyers and investors. Not surprisingly, Goleta currently has only two months of inventory, compared to 2.4 months at the end of 2024.
Santa Barbara
The median price for the general Santa Barbara area is $2,302,500, up from $2,122,500 at year-end 2024. Santa Barbara has a significant concentration of higher-end homes in neighborhoods such as the Riviera, Upper East, and ocean-view areas of the Mesa. Many of the 436 sales represented that segment of the market and helped fuel this increase.
Montecito and the Luxury Market
The median price for Montecito at the end of 2025 was $6,192,000, reflecting a 6.3% increase from one year ago. This figure reflects only sales reported through the Multiple Listing Service. The true story of the Montecito market is also seen in the surge of off-market sales, which, due to buyer or seller preference, are not reported through the MLS. Last year saw a record 12 sales over $20 million. The previous record of eight sales over $20 million was set in 2021 and 2024. The number of closed house sales in the 93108 area increased significantly, from 124 in 2024 to 164 in 2025.
The year also ended with a record-priced closing in Montecito: 700 Picacho Lane, which sold for $60 million, with several buyers vying for the property.
Condos
Market-wide, condos showed a 4.7% increase in median price year-over-year, and the number of sales increased by over 11%. This segment continues to provide entry-level pricing for many first-time buyers; however, we have also seen a strong number of high-end Montecito and Santa Barbara luxury condos sell at record levels.
Strategies for Buyers
Here are a few tips for navigating a sellers’ market. While cash is king, if you plan to finance part of your purchase, make sure your financing is fully in order before you begin your search. Work closely with a lender and have a strong pre-approval letter ready when it’s time to make an offer. When writing an offer — especially on a well-priced new listing — be prepared to pay full price or more. To strengthen your offer, carefully consider what the seller may be looking for, such as escrow length or a rent-back period, and try to match those terms when possible. If you can accommodate these needs, your offer will stand out in a competitive situation.
Real estate is a long-term investment and often the single largest component of an individual’s future net worth. Call your Realtor to discuss your path to achieving your real estate goals.
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®. Jackie Walters is a licensed agent with Village Properties with over 30 years of local experience. Jackie can be reached at (805) 570-0558 or jackie@villagesite.com
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