The Santa Barbara real estate market in 2025 was the third straight year characterized by stability and consistency since the historic price gains during the COVID years of 2020 – 2022.  The Riviera/Eucalyptus Hill/El Cielito neighborhoods produced a total of 75 sales with a median price of $3,165,000 representing a modest 3% increase over 2024.

A broader perspective of the market over the last six years illustrates the significant transformation that took place between 2020 and 2022.  Both the median price and the number of sales increased dramatically during this unusual two-year period in which many people were leaving congested cities and relocating to resort-like areas such as Santa Barbara.  The median price climbed by almost 60% between 2019 and 2022 and the overall sales were dramatically higher as well.  Since that time, the market has settled into a much different dynamic characterized by low inventory and strong but more subdued buyer demand.  Furthermore, there is no indication that the market will experience much of a change in the foreseeable future.  

As we look forward to 2026 it appears that the Santa Barbara market is proceeding at a similar pace to what we have gotten used to during the last three years.  Inventory is coming on at a moderate pace, and the properties that are priced appropriately are selling quickly.  I have experienced this firsthand with a listing that I brought on the market this week which has generated 4 offers and will probably get bid up in price.  Feel free to contact me for a consultation regarding any of your real estate needs.