Santa Barbara Real Estate Market Update, July 2025

Inventory Rises for 21st Month as Market Rebalances

Santa Barbara’s high-end housing market remained resilient in July 2025, with price adjustments creating new opportunities for buyers while encouraging strategic repositioning for sellers. Nationwide, 20.6% of listings saw price reductions, slightly fewer than in June, reflecting a market that’s adjusting, not declining. In Santa Barbara’s sought-after coastal neighborhoods, properly priced homes with premium features such as breathtaking views, utmost privacy, and smart updates continue to attract serious interest. Today’s buyers are negotiating with more confidence, with demand remaining strong for homes that are thoughtfully presented and move-in ready.

Top Luxury Realtor Cristal Clarke sitting at a table, on her phone and laptop.

The Real Estate Market in Santa Barbara and Beyond

Median list home prices nationally rose just 0.5% year over year to $439,450. In Santa Barbara’s competitive luxury real estate market, price cuts are increasingly common, especially for homes that are not move-in ready or properly priced. Homes in Montecito, Hope Ranch, and the Riviera that check all the boxes—views, privacy, upgrades—are still moving, but buyers are negotiating more confidently than in recent years.

New Listings Bring Fresh Inventory

The number of newly listed homes rose 7.3% year over year, expanding options for luxury buyers in the Santa Barbara area. While new listings dipped slightly from prior months nationwide, Santa Barbara continues to see a healthy pace of activity. Total unsold inventory—including homes under contract—grew by 16.9%, signaling that buyers now have more room to explore and compare. For sellers, this is a great time to shine by working with an expert who knows how to position a home for success in a more competitive, but still robust, coastal market.

Santa Barbara Snapshot

Increased inventory means more breathing room for both buyers and sellers. Luxury homes are taking a bit longer to sell, with days on market trending upward, benefiting buyers who previously felt rushed. As you will see below, properties in coveted neighborhoods are seeing steady activity, especially when priced to reflect current market realities. For sellers, it’s a time for smart strategy rather than speed, and for buyers, it’s a window of opportunity in one of California’s most desirable real estate markets.

Santa Barbara Real Estate Market Update by Neighborhoods

A birds eye view of a sprawling contemporary home surrounded by lush landscaping and verdant rolling hills.

Montecito

The luxury real estate market in Montecito remained steady and promising throughout July. This coveted coastal enclave welcomed 26 new listings, offering refined options for high-end buyers seeking privacy, elegance, and ocean breezes. Meanwhile, 23 price adjustments signaled strategic repositioning by sellers aiming to meet the market where it is. Closed sales in this upscale hamlet totaled 12, with 10 homes pending. Montecito continues to reflect strong buyer interest and healthy demand. The community’s timeless appeal, from estate living to proximity to world-class amenities, ensures that Montecito remains one of Santa Barbara’s most desirable and resilient markets.

The rear facade of a modern 2-story home with walls of windows, a serene pool and luxury landscaping.

Santa Barbara

In July, Santa Barbara’s real estate market continued to show strength and stability. A total of 134 new listings hit the market, offering a range of fresh opportunities for discerning buyers. Strategic pricing remained key, with 86 sellers adjusting their asking prices to align with buyer expectations. Meanwhile, 91 homes successfully closed escrow, and 103 properties entered contract, all strong indicators of steady demand.

Hope Ranch

This exclusive Hope Ranch enclave continued its steady momentum in July, adding 2 new listings that further elevate the area’s limited and prestigious inventory. Sellers are aligning with current market dynamics while preserving value, hence 7 strategic price adjustments. Five homes closed escrow, and another 4 were contracted, underscoring ongoing demand for properties in one of Santa Barbara’s most private and sought-after communities. The blend of privacy, acreage, and equestrian amenities continues to attract discerning buyers seeking a refined lifestyle on the California coast.

Carpinteria

The luxury real estate market in this charming seaside town stayed active and encouraging throughout July. With 17 new listings, buyers can choose from a range of opportunities for buyers drawn to its relaxed coastal lifestyle. A total of 14 price adjustments helped reposition properties to attract renewed interest in a shifting market. The quaint coastal community saw 12 closed sales and 10 homes pending. Carpinteria real estate remains healthy and dynamic. From beachside retreats to mountain-view estates, this peaceful South Coast community continues to appeal to those seeking beauty, privacy, and a slower pace just minutes from Santa Barbara.

Featured Property

A birds eye view of a stunning mid-century/contemporary luxury home surrounded by luxurious landscaping and an infinity-edge pool.

Refined Design, Stunning Views, Exceptional Privacy
4 Beds 4 Baths 3,359 Sq.Ft. 1.05 Acres
Listing Price: ^$ 5,995,000

Nestled in the tranquil Montecito foothills, this exceptional Barry Berkus-designed home captures panoramic views of the Pacific Ocean, Channel Islands, and Santa Barbara Harbor. Blending timeless mid-century architecture with modern refinement, the residence offers a rare opportunity to own a piece of architectural history in one of Santa Barbara’s most sought-after communities.

A refreshingly bright, airy sitting room of a mid-century home with an ocean view through large glass doors and windows.

Step through a hand-carved front door and follow an elegant allée of cypress trees into a sunlit interior defined by 15-foot ceilings, exposed wood beams, skylights, and clerestory windows. The open-concept layout, with Champagne limestone flooring throughout, creates a seamless flow between living, den, and study areas—ideal for both relaxed living and sophisticated entertaining.

The sleek gourmet kitchen of a stunning mid-century home.

The gourmet kitchen features top-tier appliances, including Viking, Sub-Zero, and Miele, all anchored by a Caesarstone island and framed by ocean-view windows. The adjacent primary suite is a private retreat with a spa-inspired bath, ocean-facing patio, and custom European-style closets.

The sun streaming through the trees shading a home's outdoor dining area.

Outdoors, Mark Rios-designed landscaping surrounds a koi pond, infinity-edge pool, and shaded alfresco dining area under century-old olive trees. Solar panels, Sonos sound, and a shared private well support a sustainable lifestyle.

Modern furniture and art inside the living space of a mid-century modern home filled with natural light.

Located minutes from Coast Village Road, beaches, and hiking trails, this Montecito home is a serene sanctuary that balances iconic design with everyday luxury.

Whether you're considering selling your Santa Barbara home, searching for your next dream property, or navigating both, now is a smart time to explore your options. I offer personalized, no-obligation consultations to help you make confident, informed decisions. Contact me at (805) 886-9378 or via email at Cristal@montecito-estate.com to get started. And remember to explore my blog for the latest updates on Santa Barbara real estate trends, local market insights, and national housing news.

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Client Reviews

“It was an emotional experience selling our mother’s home in Montecito that we all loved so much but Cristal made the process easier on our whole family by guiding us through the transaction every step of the way. She knows the market so well and everything she recommended was on point including the asking price, painting, and staging the home, which looked beautiful and helped the buyer envision her new home. We sold it the first day it hit the market with an offer above asking! Cristal did an incredible job communicating with us and the buyer to ensure that the transaction would run smoothly. We highly recommend using Cristal, she was a pleasure to work with! ”

- J & A

“Cristal is a pleasure to work with! Her knowledge of the local real estate market coupled with her amazing listening skills resulted in her showing us an array of homes that were all excellent choices. Her low-pressure patient attitude made us feel extremely comfortable with the whole process. I cannot recommend her highly enough.”

- M.F.

“Cristal Clarke is #1 in her field - and you don't become #1 by luck. Cristal works harder, and longer, and with more charm and patience than any real estate agent I have ever worked with in the past; her calendar has no weekend, her days have no clocks, her only concern is selling your property as soon as possible and for the best price on the market. Am I a fan? You bet!”

- P.B.

“We have used Cristal now several times and cannot express how grateful we are for her expertise, dedication, and unwavering support throughout the entire home-buying process. Cristal is knowledgeable, patient and attentive. Her attention to detail is remarkable, and she consistently went above and beyond to provide us with all the information and resources we needed to make informed decisions. Cristal is a skillful negotiator and advocate. She can navigate complex negotiations with professionalism and grace and felt like a true partner to us in the home-buying process. Cristal has a genuine passion for real estate and a deep commitment to her clients' satisfaction. I cannot speak highly enough of Cristal and her exceptional service. She is a true expert in her field and her dedication to excellence, combined with unwavering support is the reason we choose to work with her for all our real estate buying needs.”

- T.C.

“Cristal is a top-notch realtor who sold my home before it ever went on the market. I had two competing offers that enabled me to get top dollar for my home. Not only is Cristal superb but her team is extraordinary. I cannot say enough about Cristal and her team. They are simply phenomenal, the consummate professionals, who took care of every possible detail, making the sale and transition period, smooth from our end. They are also lovely, caring people, who knew all the right professionals, to get the job done. Thank you, everyone!”

- D.R.

“I could list lots of cool adjectives to describe Cristal. All good by the way. But, that is not why I or anyone should hire Cristal. My reason for hiring her, which proved to be correct, is very simple. She got the job done. And, she does it time and time again and with zero issues. And, that is why she is one of the top agents in the country. End of subject. ”

- M.A.

“Working with Cristal was a complete pleasure. Cristal was extremely patient with us as we evaluated nearly 2 dozen homes over a span of 2 years. Her knowledge of the market is unmatched. Cristal provided us with exceptional counsel as we evaluated opportunities and negotiated pricing. The closing process was handled thoroughly and efficiently. We could not be happier with our purchase and even more happy to now call Cristal our friend.”

- D.K.

“Cristal Clarke has conducted numerous real estate transactions for me beginning 13 years ago with the purchase of a Lemon Ranch. She has handled both large and small purchases and sales with equal dedication. As a negotiator, you can’t find anyone better. Her transactions are always conducted in the most appropriate and professional manner. Cristal has considerable knowledge of the Santa Barbara market.”

- S.N. Decker Ph.D.

“Living in Europe, we were to say the least, unaccustomed to the nuances of Real Estate acquisition in California and Cristal steered us through the process with absolute professionalism and personal attention to detail at every turn. Her in-depth knowledge of the market place combined with enthusiasm and drive was the only reason we secured the property of our dreams and will be forever grateful. If you are looking for personal discrete and private representation of the highest quality we suggest you look no further than Cristal Clarke.”

- Johan and Paula van den Berg

“Cristal is very straightforward, cheerful, helpful, professional and trustworthy….we felt very lucky to work with her.”

- John and Lacey Williams

“After considering our many choices, we are grateful it was Cristal Clarke of Sotheby’s International who represented the sale of our Montecito cottage. We are familiar with Cristal’s reputation of hard work and dedication to clients, but it was her attention to detail that made our experience so positive. She offered suggestions for staging the property, worked in harmony with potential buyers and was even able to secure back up offers. The sale of our cottage was completed much sooner than we expected, due in great part to Cristal’s professional skills and support. We highly recommend Cristal as a first choice for anyone needing representation with real estate.”

- Michael & Nancy Lee

“Our experience in working with Cristal Clarke resulted in the successful and discrete acquisition of a property which was not yet on the open market. Her knowledge of the Montecito/Santa Barbara area and vast expertise blended with her passion for real estate and architecture, provided us with the very highest level of professionalism and personalized services. Cristal exhibited a rare combination of excellent communications, attention to detail, creativity and patience.”

- Richard and Catherine Frinier

“Cristal really breaks the mold. She knows every nook and cranny of this real estate market, understands value, and follows up on everything, all the time. She was incredibly patient with our two year quest to find the perfect house. Every house hunting trip from across the country was well planned, and our time was never wasted. On top of her professionalism and expertise, she is delightful to spend time with. We are thrilled with the home we purchased, and grateful to Cristal for so wisely advising us through this process, right through to the close and beyond.”

- Laurie Siegel

“We met Cristal first in the course of renting a winter home (for three years), then buying a house using her as our agent. She was amazingly good at listening to our wants and showing us homes that fit our needs. Her mastery of the paperwork was perfect. Most importantly, there was never a situation where we doubted her straightforwardness or integrity. If we do another real estate transaction in Montecito (which I doubt, we’re happy with what we purchased), without question we’d use Cristal again.”

- Ken Saffir

“Susan and I just want to thank you for your efforts in the sale of our home. You are really quite amazing. Your competence, persistence, optimism and humor made the entire process effortless. Every problem that arose, you somehow fixed; any obstacle, you overcame. We have bought and sold many homes. It has never been such a painless and enjoyable process!”

- Michael & Susan Marquart

“A little something about “our” realtor, Cristal Clarke. My wife and I came to Santa Barbara about fifteen years ago looking for a seasonal home from which to enjoy the weather and amenities of the central coast. Being in the real estate business myself I was familiar with agents and brokers so entered the market with open eyes. We “flipped” a few houses in the early years, dealing with various agents and finally ended up in Montecito. That’s when good fortune put us together with Cristal. To say we were impressed is to put it mildly. Cristal really knows the market. She is familiar with the area, its history and trends. When we have questions about a particular property she either has the answers immediately or gets back to us by phone or email. There is no waiting or wondering with Cristal. She is an agent who is “on top of it.” Her recommendations as to price points, contractors, inspectors and title agents have proven to be exceptional, showing great insight and the highest professional standards. We consider ourselves exceedingly fortunate to say that Cristal Clarke is our realtor and would recommend her services to any serious buyer or seller.”

- Rob & Judi Kelch