While the number of sales and median price for the third quarter of 2025 showed modest declines from the same period last year, I would still describe the Santa Barbara real estate market over the last three years as one of consistency and predictability. The Riviera/Eucalyptus Hill/El Cielito neighborhoods produced 19 sales with a median price of $2,950,000 in the third quarter which is the lowest median price since the end of 2023.
As I mentioned a few months ago in my first half analysis, the median price fluctuations over the last few years are mainly due to a shift in sales at various price points. The $1 to $3 million range has been the most consistent and typically accounts for over a third of the total sales. Interestingly, in the third quarter there was one more sale in the luxury segment of the market compared to the first two quarters, but the $3 to $6 million range underperformed. So, the lack of sales in the mid-range explains the overall median price decline. The current market in mid-October continues to have a steady pace of sales and new listings, so my expectation is that the final figures for 2025 will be similar to what we have experienced in the last 3 years. Again, the dynamic of the Santa Barbara real estate market since the historic price gains during the COVID years of 2020 – 2022 has been stability and consistency.
As we look forward to the end of this year and into 2026 there are two trends that should benefit the Santa Barbara market. One of these is that homeowner’s insurance is beginning to stabilize and the other is a gradual decrease in mortgage rates. Additionally, as I personally experienced with one of my Riviera listings recently, the properties that are positioned correctly and marketed aggressively are still performing well in the current market. Feel free to contact me for a consultation regarding any of your real estate needs or questions.
