The Santa Barbara real estate environment last year was characterized by a small but encouraging rise in both prices and sales after the anemic, low inventory market that we experienced in 2023.  The final tallies in the Riviera/El Cielito/Eucalyptus Hill neighborhoods showed a 13% increase in sales combined with a 4% enhancement in the median price.

A closer analysis of the data shows consistency in the past two years at both the lower and higher end of the price brackets.   There were 36 sales in the $1 to $3 million range in 2024 which was essentially identical to the previous year, and the luxury market (above $6 million) generated a total of six transactions both years.  The $3 to $6 million segment reflected a 25% increase in sales from 2023 which explains the modest increase in the median price.  Another dynamic of note is that the 4^th quarter did not sustain the pace of sales that we witnessed earlier in the year, most likely due to the external distraction of the presidential election.  Furthermore, while the buyer demand was strong overall there were quite a few listings that lingered on the market for months and ended up selling for much less than the initial list price.  On the other hand, there were a number of homes that sold very quickly and/or got bid up in price suggesting that the positioning of listings is critical given the current dynamics of the market.

As of this writing in mid-January it is difficult to assess where the market is heading in 2025, however there are currently 14 active listings along with 10 that are under contract or have sold.  This suggests that there is a healthy level of activity so far.  Additionally, my recent discussions with colleagues and clients leads me to believe that the inventory and number of sales will surpass what we have experienced in the past two years.  What I don’t expect to change is that buyers will continue to be patient and selective.  Given that dynamic, my advice to sellers is to consult with a local real estate expert to ensure that your property is positioned correctly and marketed professionally in order to generate a successful sale.