As we closed out the year, the Santa Barbara South Coast housing market showed steady momentum with signs of growing balance.
On a year-over-year basis, the median sale price reached $1,990,000, reflecting a 4% increase, reinforcing the market’s long-term value stability. Seventy-one properties sold, marking a 5% increase, while 57 homes went under contract, an 11% rise, clearly highlighting sustained buyer demand even during a seasonally quieter month.
Inventory continued to move at a measured pace, with 50 new homes entering the market. Buyers are benefiting from slightly more choice and improved negotiating conditions. One notable data point: just over 8% of sellers who successfully closed adjusted their pricing to better align with buyer expectations a clear indicator that today’s market rewards realism and preparation.
As we move into the new year, the Santa Barbara housing market is settling into a more balanced and workable rhythm. Mortgage rates have become more stable, buyers are experiencing more breathing room, and sellers are benefiting from a market that favors thoughtful pricing and strategic positioning rather than urgency.
This market isn’t about perfect timing it’s about understanding what’s realistic and aligning current conditions with your goals and comfort level.
If you’d like a clearer view of what may be taking shape in the Santa Barbara housing market as we head into 2026, I’ve shared an insightful, easy-to-read update on my website that you’re welcome to explore at your convenience. You can find it under the Community Resources tab, then Market Insights, titled “A Calmer Shift Is Taking Shape in the Santa Barbara Housing Market.”
