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Q1 | 2025 | REAL ESTATE MARKET UPDATE

April 9th, 2025

 

SANTA BARBARA COUNTY'S MARKET IS UNLIKE ANYWHERE ELSE

As I reflect on the distinct characteristics of Santa Barbara and Montecito, I’m continually reminded of what makes this coastal haven so exceptional. With serene natural beauty, quiet sophistication, and a deeply rooted sense of community, Santa Barbara’s real estate continues to prove its resilience — regardless of economic or political tides.

Some may call it a “bubble,” but we know better. This is a cultivated, soulful beach enclave — where a shared commitment to living well runs deep. It’s not just a place to live — it’s a place to elevate life. Santa Barbara and Montecito are firmly on the map and continue to captivate those seeking an exceptional quality of life.

SOUTH SANTA BARBARA COUNTY – Q1 2024 vs. Q1 2025

  • 2024: 275 sales, $693 million in total sales, average sale price of $2.52 million, median sale price of $1.625 million, 589 active listings.
  • 2025: 308 sales, $1.003 billion in total sales, an average sale price of $3.248 million, a median sale price of $1.965 million, 775 active listings.

The year-over-year comparison is clear: the market accelerated. Active listings rose 32%, reflecting growing seller confidence with more inventory hitting the market. Sales volume jumped 44%, the number of transactions rose 12%, and both average and median prices climbed — up 29% and 21%, respectively — demonstrating strength across all price points. One trend to watch is that time on the market has continually increased across the county.

MONTECITO – Q1 2024 vs. Q1 2025

  • 2024: 40 sales, $293 million in total sales, an average sale price of $7.33 Million, a median sale price of $4.96 million, 120 active listings.
  • 2025: 61 sales, $409 million in total sales, average sale price of $6.7 million, median sale price of $5.275 million, 174 active listings.

Montecito had a dynamic first quarter in 2025, with a 53% increase in sales and a 40% rise in total volume. While the average sale price dipped slightly — reflecting a broader range of transactions — pricing remained firmly in the luxury tier. The strong median price and increased inventory suggest a healthy yet high-performing market that continues to attract discerning buyers.

HOPE RANCH – Q1 2024 vs. Q1 2025

  • 2024: 2 sales, $14.1 million in total sales, average & median sale price of $7.05 million, 16 active listings.
  • 2025: 9 sales, $64.2 million in total sales, an average sale price of $7.13 million, median sale price of $6.3 million, 28 active listings.

Hope Ranch roared back to life in Q1 2025. Sales increased dramatically — from just 2 to 9 — and inventory nearly doubled. Prices remained steady overall, with a slight dip in the median reflecting broader buyer activity across price points. Hope Ranch has clearly gained momentum again.

ULTRA-LUXURY INSIGHT

There were eight sales over $20 million in Q1, which is more than we often see in an entire year. This activity level signals a strong rebound in the ultra-luxury segment, particularly during the first two months of the quarter. The sales were driven in part by the rare availability of truly exceptional A+ properties—prompting buyers to act decisively when the right opportunities appeared.

Big picture: the long-term local real estate outlook remains resilient—especially for properties that are well-priced and offer something truly one-of-a-kind. While we are keeping an eye on factors like fluctuating interest rates, insurance, and broader economic shifts, these dynamics may simply encourage buyers to be more thoughtful and strategic in Q2.  I firmly believe investing in the local lifestyle will remain one of life’s most rewarding decisions.

Whether you're just starting to explore or ready to make a move, we're here to provide clarity, strategy, and discretion every step of the way.

For a confidential consultation, contact us at 805.565.4014 or email us by clicking on the button below.

Looking forward to hearing from you!

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ALL Q1 SALES IN EACH AREA

NOTE: This is not in any way an official advertisement or publication of these properties. Data from The MLS and CORT for January 1, 2025 through March 31, 2025 and represents properties listed or sold by various brokers. The MLS, CORT, and Marsha Kotlyar Estate Group do not guarantee and are not in any way responsible for its accuracy, and data maintained may not reflect all real estate activity in the market. If your house is currently listed, this is not intended to be a solicitation. Based on information obtained from the MLS as of March 31, 2025. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent contained herein may or may not have been the Listing and/or Selling Agent.

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