Statistics in this report are from Santa Barbara MLS (FlexMLS) data for August 2025 vs. August 2024: single-family homes and PUDs on the South Coast (Santa Barbara, Montecito, Goleta, Carpinteria and Summerland). Duplicate MLS records are removed.
I have to admit, I was a little shocked by this month's statistics. The real estate market is still moving along, with sales remaining strong, though some homes are taking longer to sell, especially in the high-fire areas and higher price ranges. What I wasn't prepared for was the year-over-year difference in average sold price: this August versus August 2024 showed a 30% drop! Does that mean the market is tanking? Not really.
Why the Average Fell While the Median Rose
The median sales price actually rose 7.7%. And while there were a few more sales this year compared to last (86 vs. 81), total sales volume was significantly lower ($268,720,192 vs. $363,094,479). August 2024 included a single $96 million sale on Padaro Lane, and this August's top sale was $12 million. A few ultra-luxury closings can swing the average dramatically, which is why the median is the better gauge of what's happening to typical home values.
Consider a Backup Offer
Escrows do fall apart, whether over inspections, financing or a change of plans. If you're interested in a home that's already pending, consider writing a backup offer! This way you can step into the purchase without the property going back on the market and potentially avoid competition. Plus, the previous buyers likely completed inspections, which could save you money.
Inventory: About the Same as Last Year
We've seen more homes coming on the market, but overall supply isn't much different from last year (321 homes on the market at the end of August vs. 314). That puts us at just under 4 months of inventory, still leaning toward sellers, though edging toward more balance. Homes are also taking longer to sell: an average of 67 days on market this August vs. 49 last August.
August 2025 Market Snapshot
- Most Expensive Home Sold: $12,000,000 (4280 Via Esperanza, Hope Ranch)
- Least Expensive Home Sold: $1,060,000 (1130 Hutash St, Santa Barbara)
- Median Price Home Sold: $2,264,500
- Average Price Home Sold: $3,124,653
- Average Cumulative Days on Market: 67 days
Is It a Good Time to Sell or Buy?
Is it a good time to sell? Yes, though you don't want to wait too long, as the market is slowly shifting.
Is it a good time to buy? Yes. As I always say: buy when you can. It's better than paying someone else's mortgage through rent. You may have heard the phrase, "marry the house, date the rate." Interest rates can be refinanced when they come down. While values could dip slightly over the next few years, history shows they have risen again over time.
I am here to help if you have any questions!
Curtis Swan II
(805) 607-9709
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