The Big Picture: Continued Momentum
Santa Barbara's real estate market is maintaining impressive momentum this February, with 102 total transactions representing a 15% increase from February 2024. The median price reached $1,907,500, climbing 20% from last year. Notably, 96 of these 102 sales exceeded the million-dollar mark, further cementing our region's position in the luxury market.
Market Highlights by Neighborhood
Montecito: The luxury leader continues its strong performance with 20 sales averaging $5,678,099. While this represents a 50% decrease in average price from February 2024's extraordinary figures, the median price of $5,300,000 shows more stability with just an 11% decrease. This adjustment reflects a more diverse mix of properties rather than a true market correction. Cash continues to dominate with 55% of Montecito buyers bypassing financing.
Santa Barbara: Our core market saw 49 single-family home sales in February, a robust 33% increase from last year. The average price reached $2,520,304 (up 28%) with a median of $2,275,000 (up 37%). This consistent appreciation demonstrates the enduring appeal of Santa Barbara's primary neighborhoods.
Hope Ranch: This exclusive enclave recorded 3 sales with an average price of $6,120,000 and a median of $6,300,000. With its limited inventory and estate-sized properties, Hope Ranch continues to attract discerning buyers seeking privacy and space.
Goleta: Our family-friendly market saw 22 sales with an average of $1,712,841 (up 17%) and a median of $1,612,500 (up 19%). Goleta continues to offer relative value while delivering steady appreciation.
Carpinteria: With 7 sales in February, Carpinteria posted impressive gains with average prices up 42% to $1,233,679 and median prices up 84% to $1,515,000, reflecting strong demand for this coastal community.
Market Dynamics to Consider
Several key metrics paint a clear picture of our current market:
- Inventory balance: We're seeing 2.68 months of supply, suggesting a market that's approaching equilibrium but still favors sellers
- Cash transactions: 33% of February sales were all-cash, slightly down from January but still a significant portion
- Days on market: Properties averaged 38 days for single-family homes and 31 for condos
- Above-asking sales: 31% of properties sold above list price
- Condos vs. single-family: Condo sales decreased 19% while single-family sales increased 33% compared to last yea
What This Means for You
Despite interest rates holding around 7.05%, our market fundamentals remain robust. The continued appreciation across almost all neighborhoods speaks to Santa Barbara's enduring appeal and limited inventory.
For sellers, properly priced homes continue to attract strong interest, with many receiving multiple offers. For buyers, while prices have increased, the growing inventory suggests potentially more options and slightly less competition than we saw in 2023-2024.
The recent $200 million in sales volume for February alone demonstrates the significant wealth still flowing into our market. Whether you're considering selling to capitalize on these gains or looking to invest in our unique region, the current environment offers compelling opportunities.
Would you like to discuss how these trends might align with your specific real estate goals for 2025? I'm always available to provide personalized insights tailored to your situation.
