Santa Barbara Real Estate Market Update For December 2025

Prices Rise as Buyer Demand Holds Steady: December 2025 Santa Barbara Market Snapshot

December closed out 2025 with clear signs of strength across South Santa Barbara County. While inventory expanded modestly across several segments, buyer demand remained active, supporting higher prices and faster absorption in many areas. Overall, the market continues to feel balanced — but competitive — as we head into the new year.

Single-Family Homes Show Continued Strength

Single-family home activity remained healthy to end the year. 71 new listings came to market in December, a 3% year-over-year increase, while 82 homes sold, representing a significant 30% jump in closed sales.

Inventory rose modestly to 330 homes for sale, up 6%, yet pricing momentum continued. The median sales price climbed to $2,412,500, a strong 16% increase compared to last year. Homes also sold faster, with average days on market dropping 24% to just 45 days.

Months of inventory increased to 3.11 months, up 21%, keeping the market in a balanced range.

Takeaway: Demand remains steady, and well-priced single-family homes are moving quickly despite higher price points.

Pricing Strength in the Condo Segment

The condo market reflected tighter new supply paired with rising demand. Only 18 new listings entered the market in December — a 36% decrease year over year — while 24 condos sold, up 26%.

Active inventory increased to 98 condos for sale, a 32% rise, yet pricing continued to push higher. The median condo price reached $1,200,000, marking an impressive 25% annual increase. Average days on market edged up slightly to 50 days, while months of inventory held at 3.11 months, matching the single-family segment.

Takeaway: Even with fewer new listings, buyer demand for condos — particularly well-located properties — remains strong.

Momentum in Montecito & Hope Ranch

Luxury markets saw notable activity in December across Montecito and Hope Ranch. 19 new listings came online, up 12%, while 16 homes sold, reflecting a striking 60% year-over-year increase in sales.

Inventory rose to 122 homes for sale, up 9%, yet pricing surged. The median sales price jumped to $7,655,000, a remarkable 53% increase. Average days on market increased to 83 days, typical for higher-end properties, while months of inventory declined 18% to 4.73 months, signaling tightening conditions.

Takeaway: High-end buyers remain engaged, and premium properties continue to command strong pricing.

Putting 2025 into Perspective

Looking at the full year, both single-family homes and condos posted meaningful gains in pricing and total sales volume.

Single-Family Homes — Year to Date

• Mean sales price: $3,681,066 (+4%)
• Median sales price: $2,370,000 (+8%)
• Total sold volume: $3.26B (+19%)

Condos — Year to Date

• Mean sales price: $1,348,866 (+5%)
• Median sales price: $1,048,500 (+5%)
• Total sold volume: $399M (+19%)

Across both property types, nearly identical volume growth underscores broad-based demand throughout 2025.

Bottom Line

December capped off a year defined by rising prices, steady buyer activity, and improving market balance. While inventory levels have expanded modestly, absorption rates and pricing trends suggest South Santa Barbara County is entering 2026 from a position of strength — particularly for sellers who price strategically and buyers who are prepared to act decisively.

If you’re planning a move in the coming months, understanding these trends now can help you move forward with clarity and confidence.