Price for Today
“In the business world, the rearview mirror is always clearer than the windshield.” – Warren Buffett
After the extraordinary surge from 2021 to 2023, Montecito home prices have shifted into a more sustainable pace.
Although, the real story is a little more nuanced. Demand remains very strong for the right property at the right price. And, the luxury market, in Montecito and across the country, continues to show surprising strength, fueled by the stock market/investments, generational wealth transfers and a demand for the luxury lifestyle among a privileged affluent class. Still, there are more luxury listings on the market today and buyers take their time choosing and deciding on the price. Not all homes are selling, and price is the reason.
WHAT THE NUMBERS SAY
- 2021: Average price $5,703,739 — up 33% from 2020
- 2022: Average price $6,497,279 — up 20% from 2021
- 2023: Average price $6,098,584 — up just 1%, signaling the market hit a plateau
- 2024: Average price $7,180,683 — up 8%, showing steady recovery
- YTD 2025: Average price $7,038,141 — up 4% from 2024
PRICING NOT PATIENCE
A well-priced home, at any price point, sells faster, draws stronger interest, and avoids the slow drip of reductions. Pricing luxury properties is, in every way, an art and a science. Determining the right price is the key to a successful outcome.
A HEALTHY SHIFT
Montecito continues to enjoy strong demand from across California and beyond but buyers are facing soaring insurance and construction costs and are looking for well-priced properties in prime neighborhoods.
The message is clear that in today’s market your price will determine your outcome.
What Happened in Montecito Last Week?
September 7th – September 13th
weekly spotlight
The Spirit of Santa Barbara
515 E Islay Street D | $1,850,000
Moments from the Santa Barbara Mission and the sunlit lawns of the Rose Garden, this delightful 2-bedroom, 2.5-bathroom pied-à-terre townhome is set in the Upper East, one of Santa Barbara’s most prestigious and picturesque neighborhoods.
