July 2025 Real Estate Update & Insights

Santa Barbara

Housing Market Insights

JULY 2025

JUNE 2025 MARKET RECAP

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Total sales were down

Median Sales Price for single family homes was up

Median Sales Price for condos was down

Inventory was up

Price Adjustments were up

Days On Market were up

Do we have a market in flux?

Perhaps...

INTEREST RATES

...remain elevated.

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MARKET PULSE

As the second quarter came to a close it appeared the market may be shifting. First quarter (1Q) median sales price dramatically increased. Second quarter (2Q) median sales price was still up in April but tempered dramatically in May and June finishing only slighty up from last year. The single family home median sales price for May and June is back to the end of 2024. The Median Sales Price has been nearly flat since July 2022. Was first quarter an anomaly?

Inventory is up 40% - 60% in any given week this year. The past two years inventory has peaked in October. This year we surpassed last year's high inventory mark in April. To date inventory was still growing into July. The increase in sales is not keeping up with the number of new listings.

Days on market for unsold inventory is up from last year.

Turnkey, single level homes are in high demand. Sales remain robust for homes that are updated. Homes that need work or updating are taking longer to sell and/or are having to price "right" to incentivize buyers.

Thirty to forty percent of our inventory has experienced at least one price adjustment.

Homes priced under $2.5M have the largest buyer pool and the fewest days on market. These tend to sell within 30 days.

Nearly a fourth of our inventory are homes priced over $8M. The majority of homes at this price point sell below their list price and are on the market for 110 days.

Condos may be showing some softening in price and activity. June median sales price dropped from last year. Days on market for June doubled. Condo inventory has doubled from last year.

Four out of 10 buyers remain all cash.

For the remaining buyers, interest rates matter. Interest rates drifted under 7% in early June and have been in a tight range near 6.75% for much of the Summer.

Affordability remains a problem for many in Santa Barbara. If interest rates drop meaningfully (under 6%) that may encourage more buyers and sellers to enter the market.

If Congress repeals the Capital Gains tax that would free up some would be sellers. We'll see...

June 2025 Sales Stats

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Total Sales: 113 -6%

Median Sales Price Combined:  $1,650,000 -4%

Median Sales Price Home:  $2,138,830 +7%

Median Sales Price Condo:   $999,000 -8%

Median Days On Market: 14

Average Sold to List Price Ratio:  97%

Cash Sales:  40%

Off Market Sales:  7

Sales over $8M:  8

Inventory Supply:  3.72 months

*The above stats include off market sales.

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INTEREST RATES

Interest rates remain a key challenge in today’s housing market.

While inventory is rising and overall sales are up for the year, higher mortgage rates are directly impacting affordability. Increased borrowing costs reduce purchasing power and put pressure on buyer budgets — especially in a high-price market like South Santa Barbara County.

As a result, many buyers are being priced out, or are having to adjust expectations in terms of size, location, or condition.

The ripple effect? Sellers have to be thoughtful on how to best attract buyers. Homes need to be priced and presented smartly to attract attention. Buyers are still active — but they're making careful, value-conscious decisions.

Today's 30 yr. fixed mortgage rate 

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📈 April / May 2025 Market Snapshot

South Santa Barbara County

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May 2025 Sales Stats

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Total Sales: 125 +4%

Median Sales Price Combined:  $1,820,000 -2%

Median Sales Price Home:  $2,281,250 -12%

Median Sales Price Condo:   $1,152,000 +24%

Median Days On Market: 13

Average Sold to List Price Ratio:  97.5%

Cash Sales:  40%

Off Market Sales:  5

Sales over $8M:  3

Inventory Supply:  3.49 months

*The above stats include off market sales.

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April 2025 Sales Stats

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Total Sales: 127 +14%

Median Sales Price Combined:  $1,950,000 +12%

Median Sales Price Home:  $2,512,500 +11%

Median Sales Price Condo:   $1,049,000 -3%

Median Days On Market: 14

Average Sold to List Price Ratio:  97%

Cash Sales:  35%

Off Market Sales:  13

Sales over $8M:  4

Inventory Supply:  3.38 months

*The above stats include off market sales.

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Just Listed

512 E. Islay St.

Santa Barbara, CA 93101

Sold

997 N. San Marcos Rd.

Santa Barbara, CA 93111

Sold

1055 Colleen Way

Santa Barbara, CA 93111

Sold

780 Calle Rey Mar

Carpinteria, CA 93013

Compass Concierge

We are in the thick of Summer. It's beautiful outside! Hopefully, you are doing something fun.

Thanks for trusting me with meaningful market insight and data. Let me know if you need anything.

See you soon.

...........................................................................

Kirk G. Hodson

REALTOR®

M: 805.886.6527

E: [email protected]

W: kirkhodson.com

DRE# 01908650