Howdy! We hope everyone enjoyed their summer.

What is happening in the Santa Barbara Real Estate Market? Here are the headlines:

Total Sales in July picked up compared to 2024
Sales for 2025 seem likely to outpace 2024 by at least 10%
Pendings (homes under contract) have picked up
Inventory Levels have leveled out over the last two months

Let’s dig into it a little.

July Sales Snapshot

Sales in July were up 30% compared to 2024 — a very encouraging sign. While July has historically been a slower month in recent years, this year’s numbers show a welcomed rebound. That said, sales are still below what we’d consider our baseline years (2017–2019), so there’s still room for growth.

Even so, the trajectory is positive: total sales year-to-date are up 10% compared to the same period in 2024. In fact, six of the first seven months in 2025 have outperformed their 2024 counterparts, signaling a steady and consistent upward trend.

We like the slow, steady growth we’re seeing. To put it in perspective:

2024 outpaced 2023 by 12%
We’re hopeful 2025 will beat 2024 by at least another 10%

This kind of consistent growth suggests a healthier recovery than a quick, unsustainable bounce.

Pending Sales and Inventory Trends

In July, we also saw an increase in homes going under contract, which is another strong indicator of demand building up.

On the inventory side, things are finally stabilizing. From January to June, the number of homes for sale increased each month. But over the past two months, inventory has plateaued, hovering between 350 to 380 active listings. This leveling out is a positive sign — it suggests the market is starting to balance, with more buyers stepping in to match the increased inventory.

Final Thoughts

If we had to sum up today’s market, we’d describe it as more “need-based” than “want-based.” Most of the activity we’re seeing is driven by major life changes — relocations, family transitions, or job shifts — rather than buyers or sellers making moves just because they feel like it.

This shift is one of the key reasons sales volume remains lower than in past peak years. The second is there is in general, less pressure on buyers. With this, buyers are generally more deliberate and selective, taking their time to find the right fit.

Real estate remains dynamic, and we love keeping you informed. If you have questions about the market, your home, or your plans, we're always here to help.

Thanks for reading — and as always, don’t hesitate to reach out!