Santa Barbara Real Estate Market Report | Q3 2025
The Santa Barbara real estate market gained renewed momentum in Q3 2025, with strong sales activity and rising values across the region. Total resale transactions jumped to 370 sales—a 16% increase over Q3 2024, and a dramatic rebound from the 2023 low point. The median Santa Barbara home price reached $1,895,000, up 6% year-over-year and an impressive 60% rise over the past five years.
This consistent growth confirms the Santa Barbara housing market remains one of the most desirable on the California coast.
Montecito Real Estate Market: Luxury Strength in Q3 2025
The Montecito real estate market posted a standout quarter, with 42 sales and a median price of $6.15M (+8% YoY). Year-to-date, Montecito’s average sits above $7.4M, reflecting the enduring draw of Montecito luxury real estate.
Luxury demand surged, with Montecito sales rising 26% compared to last year—underscoring continued appetite for premium estates and unique properties.
Hope Ranch Luxury Homes: Resilient and Competitive
The Hope Ranch real estate market continues to reflect stability and desirability. In Q3, the median price held at $6.3M (+3%), while the year-to-date average climbed to $8.09M (+7%).
Many Hope Ranch luxury homes sold to all-cash or non-contingent buyers, with roughly 40% of transactions closing without financing. This highlights both buyer confidence and the exclusivity of this community.
Goleta Housing Market: Value and Volume
The Goleta housing market showed impressive activity, with 192 sales in Q3 and a median home price of $1.71M (+6% YoY).
Goleta homes for sale continue to attract buyers seeking value relative to Santa Barbara and Montecito, particularly families and first-time buyers drawn to excellent schools, parks, and community amenities.
Santa Barbara City Real Estate: Balanced Growth
The Santa Barbara city real estate market recorded 329 sales in Q3, with a median price of $2.32M (+5% YoY). The city remains a core hub for buyers looking for balance between lifestyle, location, and price diversity within the Santa Barbara housing market.
Inventory and Buyer Dynamics
Inventory has nearly doubled since 2022 lows but sits at just 3.91 months of supply, below the 5–6 month balanced market level. Importantly, 74% of homes sold at or below asking price, rewarding accurate pricing and preparation.
Buyers benefit from more inventory and greater choice, but the best properties—particularly Santa Barbara luxury homes—continue to move quickly. Interest rates averaged 6.3%, a slight improvement from last year, supporting increased sales without weakening valuations.
Five-Year Perspective: Santa Barbara Home Prices Surge
In Q3 2020, the Santa Barbara real estate market saw an extraordinary 670 sales during the pandemic migration wave. Since then, Santa Barbara home prices have soared from $1.179M in 2020 to $1.895M in 2025—a nearly $700,000 gain in just five years.
Today, the market is healthier, with steadier absorption, more buyer choice, and lasting strength in the luxury Santa Barbara real estate sector.
Strategic Takeaways
For Sellers:
This market rewards uniqueness, property condition, and accurate pricing. Exceptional homes in Montecito, Hope Ranch, and Santa Barbara continue to command premium offers—often from all-cash buyers.
For Buyers:
You’ll find more choices and better negotiation conditions in the Santa Barbara real estate market than in recent years. However, the most desirable homes in Montecito, Goleta, and Hope Ranch still move quickly. Preparation, sharp strategy, and local expertise remain essential.
With gratitude for your continued trust, I provide the detailed market intelligence and guidance that define results in the Santa Barbara real estate market. For tailored comps, segment analysis, or access to off-market Montecito, Goleta, or Hope Ranch opportunities, please reach out directly.
Santa Barbara remains a world-class real estate market, and I’m honored to help you navigate it with clarity and confidence.
