Q1 March 2025 Market Report
- Spann & Associates
- Apr 25
- 2 min read
Santa Barbara Area Market Report
Through March 2025
Greetings, and thank you for delving into our First Quarter 2025 Market Report.
The year began with a stark reminder of how events in one region can impact another. As devastating fires swept through the Los Angeles area, our local market experienced an unexpected shift. While a majority of our buyer base remains
local, the consistent flow of interest from the LA market took an interesting turn. We experienced an influx of displaced residents actively seeking both purchase and rental options. This dynamic appeared to nudge some local buyers off the fence, a proactive response to the anticipated increase in competition.
Examining the data from South Santa Barbara County, the first quarter of 2025 clearly marks a shift compared to the same period last year. We recorded a notable 14% increase in the number of sales, accompanied by an 18% rise in median price.
This momentum translated into a substantial 24% growth in overall closed sales volume, signaling a distinct upswing in market activity and confidence, particularly within higher price tiers.
More recently, the global financial markets have experienced heightened volatility. So far, we have not seen any material change to our real estate market, and we are actively monitoring any potential impacts. Established in 1996, Village Properties
has navigated numerous economic cycles – from the dot-com era, the Great Financial Crisis, Covid, and beyond. Many within our firm have even witnessed these shifts since the 1970s and 80s. It’s precisely during these periods of disruption that significant opportunities can emerge, and our team is strategically positioned to capitalize on them for you, as we have consistently done in the past.
We trust this report provides valuable context. However, the nuances of each neighborhood and property are unique. Should you have specific inquiries about your market segment or an individual property, please do not hesitate to connect
with us. The entire Village Properties team is dedicated to providing you with tailored insights and exceptional service.
Sales & Inventory
In the First Quarter, there were 311 closings across the South County, an increase of 14% from Q1 2024 (vs. 274), and a small 3% increase from Q4. As we mentioned in our Q4 Report, our market continues to show signs of becoming more balanced as we continue to see Months of Supply inch back to supply/demand inch back to equilibrium.
However, it is important to note this increase can largely be attributed to Montecito making up 22% of sales this quarter, compared to 15% in Q1 2024. The strength of the Montecito market noticeably impacted overall South County results. Santa Barbara market share declined from 45% to 41%, and Goleta declined from 30% to 23%, which are notable changes.
Pricing
As a result of our long-term undersupplied market, pricing continues to appreciate and reached an all time quarterly high of just over $2,000,000. Median Price rose 18% in Q1 compared to Q1 2024. For the first time, nearly 90% of sales in the quarter were for $1MM or more. As previously mentioned, however, this jump was largely fueled by the increase in the Montecito market as well as pricing in the Santa Barbara market. As always though, performance should be more closely analyzed by submarket.
