December 2025 Market Update – South Santa Barbara County
As we close out the year along the coast, December felt more like a final reality check for sellers. Buyers are still here, still active and still willing to pay a premium but they are sharper and more selective. Homes that hit the market priced right moved in under 30 days. The ones testing the market are getting humbled. On average, homes sold for 94% of their original list price while about 25% of sales still sold over asking. These numbers are strong indicators of where the sweet spot in the market is.
Here’s what the month looked like.
Highs and Lows of the Month’s Sales
Highest Sale:
231 Mathilda Drive closed at $550,000
1 bed | 2 bath | 885 sq ft
Originally listed at $649,000
59 Days on Market
Lowest Sale:
4347 Marina Drive in Hope Ranch closed at $10,750,000
6 bed | 8 bath | ~10,000 sq ft
Originally listed at $15,995,000
200+ Days on Market
Two totally different properties. Same takeaway: pricing strategy matters more than ever.
Sales Trends and Cash Transactions – December
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Total Sales: 102 closings (up 5% from December 2024)
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Single Family Homes: 70 (no change year-over-year)
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Condos/PUDs: 32 (up 19%)
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Cash Sales: 33% of all transactions
Condos quietly stole the show this month. With rates still elevated, buyers didn’t disappear — they adjusted. Smaller footprint, smarter price point, same lifestyle.
Sales Trends and Cash Transactions – Year-End 2025
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Total Sales: 1,365 closings (up 11%)
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Single Family Homes: 998 (up 12%)
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Condos/PUDs: 367 (up 8%)
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Cash Sales: 38% of all transactions
More than a third of all purchases were cash. That’s a huge stabilizer.
When buyers aren’t rate-sensitive, pricing doesn’t fall apart.
This is why our market feels steady while other cities feel shaky.
Days on Market & Median Sales Prices
Average Days on Market (December)
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Single Family: 42 days
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Condos: 34 days
Inventory
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2.59 months of supply
(Under 6 months still favors sellers)
Median Sales Price – December
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Single Family: $1,919,993 (down 5% from last year)
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Condo: just over $1M (up 20% YoY)
Median Sales Price – Year-End 2025
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Single Family: $2,300,000 (up 6%)
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Condo: $1,093,000 (up 10%)
Here’s the nuance:
The average dipped because fewer trophy properties closed.
The median stayed strong because everyday demand is still healthy.
Condos jumped because buyers are getting strategic, not leaving.
This isn’t depreciation.
It’s redistribution.
Market Stability & What’s Ahead
More homes are hitting the market and staying on the market longer, but inventory is still tight in relation to broader market trends.
Buyers are still active and willing to be competitive for the right home but they know there's more to choose from. giving them more leverage than past years.
Cash will always be king.
For sellers:
First impressions matter more than ever- pricing, prep, staging, marketing. The homes that feel dialed-in are still moving quickly. The threshold for fixers is diminishing and homes sold with tenants in place are seeing a negative impact.
For buyers:
The good homes still go fast. If something sits, it’s usually price/condition, not lack of demand.
The Bottom Line
It’s not a “hot” market or a “slow” market. It’s a smart market. Clear strategy for buyers and sellers is the best way to stay on top of the 2026 market.
