September 2026 Market Report
More Homes Sold, Prices Adjusting, and New Opportunities for Buyers and Sellers
As we move into the final quarter of 2026, the South Santa Barbara County real estate market continues to evolve. While home prices have softened compared to last year, sales activity is picking up, signaling a market that remains active despite shifting conditions.
Both single-family homes and condominiums have experienced an increase in sales volume, even as average and median prices have declined.
So, what does this mean for buyers and sellers in Santa Barbara, Montecito, Goleta, and our surrounding communities? Let's take a closer look!
Market at a Glance: More Homes Are Selling
Through September 2026, South Santa Barbara County recorded 1,112 total residential sales, representing a 9% increase compared to the same period in 2025.
Here's how those sales break down:
809 single-family homes sold — up 9% year over year.
303 condominiums sold — up 9% year over year.
1,112 total sales — up 9% year over year.
This increase in transactions is encouraging. Despite affordability challenges and evolving buyer expectations, people are still making moves in the Santa Barbara market.
The takeaway? Buyers are active, and properties that are priced appropriately and presented well continue to attract interest.
Single-Family Homes: Prices Are Adjusting
The single-family home market has experienced some notable price adjustments this year.
September 2026 YTD Highlights:
Average Sales Price: $3,444,072 — down 4% from 2025.
Median Sales Price: $2,115,000 — down 10% from 2025.
Total Sales: 809 — up 9% from 2025.
While the average sales price has declined modestly, the larger decrease in the median price suggests a shift in the types and price ranges of homes being sold.
It's important to remember that a decline in median sales price doesn't necessarily mean every home's value has dropped by 10%. Changes in the mix of properties sold, including location, size, and price point, can significantly influence these figures.
For buyers, this could mean opportunities to explore properties that may have previously felt out of reach. For sellers, it reinforces the importance of setting a competitive asking price based on today's market rather than relying solely on past sales.
Condominium Market: Opportunities in a More Accessible Price Range
Condominiums remain an important part of the Santa Barbara housing market, particularly for first-time buyers, downsizers, and those seeking a lower-maintenance lifestyle.
September 2026 YTD Highlights:
Average Sales Price: $1,329,762 — down 5% from 2025.
Median Sales Price: $1,069,000 — down 3% from 2025.
Total Sales: 303 — up 9% from 2025.
Compared to single-family homes, condominium prices have experienced smaller median price adjustments.
With more condominium sales occurring this year, this segment continues to demonstrate buyer demand.
For those looking to enter the Santa Barbara market, a condominium may offer a practical alternative to a single-family home, especially for buyers prioritizing location, lifestyle, and manageable maintenance.
A Look at the Bigger Picture
Looking at quarterly sales trends from late 2021 through the third quarter of 2026, the market has experienced its share of fluctuations.
Sales activity slowed considerably during parts of 2022 and 2023 before showing signs of recovery. In 2026, transactions strengthened during the second and third quarters compared with the beginning of the year.
Meanwhile, the median sales price has fluctuated over the past several years, reflecting changing market conditions and the mix of homes sold each quarter.
Although prices remain elevated by historical standards, the recent moderation suggests that the market is adjusting after several years of significant appreciation and affordability pressure.
Rather than signaling a dramatic downturn, the latest numbers point to a market where buyers and sellers are continuing to find common ground.
What Does This Mean for You?
If You're Buying
There may be more room to explore your options and negotiate than during the most competitive periods of the market.
With median prices easing and sales activity increasing, buyers who are financially prepared may find opportunities worth pursuing.
However, desirable homes in sought-after neighborhoods can still generate strong interest. Understanding neighborhood-specific pricing, property condition, and recent comparable sales remains essential.
If You're Selling
Homes are still selling, but pricing and presentation matter more than ever.
Today's buyers are informed and value-conscious. Properties that are priced realistically, marketed effectively, and thoughtfully prepared for sale are better positioned to stand out.
A strategic pricing approach based on current comparable sales can help attract serious buyers and avoid unnecessary time on the market.
If You're Watching the Market
The increase in sales alongside moderating prices is an interesting combination.
It suggests that transactions are continuing even as buyers and sellers adjust their expectations.
Of course, real estate is always local. Market conditions can vary significantly between Santa Barbara, Montecito, Goleta, and individual neighborhoods. A broad countywide trend may look very different from what's happening on your street.
Looking Ahead to the End of 2026
As we head toward the end of the year, the South Santa Barbara County market continues to offer opportunities on both sides of the transaction.
The biggest takeaway from September's report? More homes are selling, even as prices have moderated.
For buyers, this may create opportunities to enter the market or make a move. For sellers, success increasingly depends on understanding current conditions and positioning a property strategically.
Whether you're thinking about buying, selling, or simply curious about your home's value, I'd love to help you navigate the market with confidence.
Let's connect and talk about what these trends mean for your real estate goals!
Alyson Spann
805.637.2884
All information provided is deemed reliable, but has not been verified & we do not guarantee it.
We recommend that buyers and sellers make their own inquiries. DRE #01206734.
Data Source: Fidelity National Title & Chicago Title: INdata Market Reporting through September 2026.
