Santa Monica Housing Market Explained

Thinking about buying or selling in Santa Monica but unsure what the numbers actually mean for you? You are not alone. With coastal demand, limited land, and shifting interest rates, it can be hard to read the market with confidence. In this guide, you will learn how to interpret the key metrics for Santa Monica, how single-family homes differ from condos, and what that means for your timing, pricing, and negotiation plan. Let’s dive in.

Key indicators and why they matter

Understanding a few core stats will help you cut through noise and focus on what drives outcomes.

• Median sale price: Shows the middle of the market without outliers. Use 12-month rolling medians to smooth seasonal swings.
• Price per square foot: Helps compare homes, but it varies by property type, lot size, condition, and views. Compare like-for-like.
• Days on market and days to pending: Faster median times signal stronger buyer activity. Days to pending often reflects demand more clearly than days on market.
• List-to-sale price ratio: Over 100 percent suggests frequent bidding. Between 95 and 100 percent suggests modest concessions.
• Active inventory and new listings: Tell you what buyers can choose from and how fresh options are.
• Months of supply: The balance of supply and demand. Under 3 months often favors sellers, 3 to 6 is balanced, over 6 leans toward buyers.

Use these for both single-family homes and condos, and evaluate them separately. Santa Monica’s condo and single-family segments often move at different speeds.

Snapshot: what to watch this month

You can track the market in a simple, repeatable way. Pull current numbers for single-family homes and for condos, then compare to last month and last year.

Note your source and date for each snapshot. If you use different portals, definitions may vary. Some include Coming Soon in active counts, and some do not.

Neighborhood snapshots to set expectations

Citywide averages can hide big differences. Here is how submarkets generally stack up:

• North of Montana: Predominantly single-family homes with larger lots, strong per-square-foot values, and steady family-driven demand.
• Sunset Park and Wilshire/Montana border: Mix of single-family and multifamily, with pricing that is premium for the Westside but often lower than North of Montana on a per-square-foot basis.
• Ocean Park, Main Street, and Pico: Diverse mix with a larger share of condos. Pricing is influenced by proximity to the beach, transit, and amenities.
• Downtown and Downtown North: High concentration of condos and a walkable lifestyle near the Promenade. Expect more condo options and varied HOA considerations.
• Oceanfront and Palisades edge: Highest premiums for view and immediate beach proximity.

When comparing homes, match property type, size, and condition, and use closed sales from the last 3 to 6 months whenever possible.

What drives prices and timing in Santa Monica

Several local factors shape how fast homes sell and at what price.

• Coastal demand and amenities: Walkability to the beach, Promenade, and Montana Avenue supports ongoing buyer interest.
• Limited land and zoning: Most neighborhoods are fully built out, and coastal overlay and local planning rules limit large-scale redevelopment. Review current standards on the City’s Planning pages for context. See the City of Santa Monica’s Planning and Community Development resources for zoning and coastal considerations.
• Regulatory environment: Local rent regulation can influence investor strategies. For background, visit the Santa Monica Rent Control Board. Short-term rental enforcement shapes supply as well. See the City’s Home-Sharing program for rules.
• Economic drivers: Proximity to Silicon Beach and employment centers supports demand from professionals. Interest rates are a major factor for affordability and can speed up or slow down activity.
• Property type dynamics: Single-family inventory is scarce and commands premiums. Condos are more plentiful in downtown and Ocean Park and are sensitive to HOA fees, parking, and location.
• Seasonality: Spring usually brings more listings and faster absorption. Winter often slows, though rate changes and macro events can override normal patterns.

How to read today’s balance of power

Your negotiation leverage depends on two quick checks.

• Months of supply: Under 3 months tends to favor sellers. Three to 6 months is a more balanced playing field. Over 6 months leans toward buyers.
• List-to-sale price ratio: Over 100 percent signals frequent over-ask outcomes. Between 95 and 100 percent suggests some concessions are common. Below 95 percent indicates buyers often have room to negotiate.

Pair these with median days to pending. A low median days to pending with low supply and over-ask ratios points to competitive conditions.

Buyers: set your strategy

You can improve your odds by planning around the numbers.

• Focus your search: Compare price per square foot by micro-market and property type. Expect higher per-square-foot near the ocean and north of Montana, and a wider range in Ocean Park, Pico, and downtown condos.
• Watch days to pending: If well-priced homes are going under contract quickly, be ready with updated proof of funds or lender pre-approval.
• Use list-to-sale data: In segments with frequent over-ask results, consider clean terms, flexible closings, and targeted contingencies. In balanced pockets, protect your inspection and appraisal priorities.
• Time your move: Spring often brings more choice. If rates stabilize or ease, expect faster absorption.
• Compare like-for-like: Do not rely on a single “city average.” Review recent comparable sales that match size, lot, condition, and proximity.

Sellers: price, prep, and timing

A thoughtful plan can shorten market time and protect your net.

• Price with precision: Anchor to recent closed comps within 3 months that match your size, location, and condition. Adjust based on current list-to-sale ratios and days to pending.
• Prepare to impress: Presentation and condition influence both price and time. Consider pre-list inspections, targeted repairs, staging, and strong media.
• Time your launch: Spring typically offers more active buyers. If inventory is tight and your category is scarce, a well-prepared listing can stand out in any season.
• Plan for appraisals: In competitive segments, recent comparable sales support pricing. In slower segments, tighten your pricing band and highlight improvements.
• Evaluate terms, not just price: Shorter contingencies, rent-backs, or flexible closing dates can improve net outcomes alongside price.

If you want hands-on guidance, ask about Compass tools and concierge-style preparation that can help deliver a polished launch.

Pricing and condo specifics

Condos trade differently than single-family homes. Factor in HOA dues, amenities, parking, and any upcoming assessments. Proximity to transit and commercial corridors can boost demand for convenience-focused buyers. Price per square foot for condos often differs from single-family homes in the same neighborhood, so compare only within your property type.

Data confidence: sources and method

When you evaluate the numbers, be consistent about your sources and timeframes.

• Use 12-month rolling medians for price and price per square foot to reduce volatility.
• State the date for inventory snapshots, since active counts change daily.
• Prefer median days to pending over average days on market for a clearer read on demand.
• Clarify definitions. Some portals include Coming Soon or hold listings differently.

For context on regional market trends, check the California Association of Realtors’ Market Data resources. For parcel details to verify lot size and improvements, you can use the Los Angeles County Assessor. To understand local zoning and coastal overlays that affect redevelopment potential, visit Santa Monica Planning and Community Development. For rental regulations that can shape investor demand, see the Santa Monica Rent Control Board and the City’s Home-Sharing program.

Ready to translate the metrics into a clear plan for your move? Reach out for a custom, up-to-the-minute Santa Monica report and neighborhood-level pricing strategy. Connect with Kate Nalbandova to get started.

FAQs

Is Santa Monica a buyer’s or seller’s market right now?

• Check months of supply and list-to-sale price ratio by property type; under 3 months of supply and ratios near or above 100 percent typically indicate seller leverage.

How fast are homes selling in Santa Monica?

• Review median days to pending for single-family homes and condos; shorter times mean stronger demand, with spring often moving faster.

What price per square foot should I expect in Santa Monica?

• It varies by property type and neighborhood; single-family homes north of Montana and oceanfront locations command higher per-square-foot, while many downtown and Ocean Park condos trade lower.

How should I price my Santa Monica home?

• Use recent closed comps within 3 months that match size, location, and condition, then adjust for current list-to-sale ratios and expected days to pending.

How do interest rates affect Santa Monica demand?

• Higher rates reduce affordability and can slow absorption, while stabilization or cuts often improve activity and shorten market times.

Are multiple offers still common in Santa Monica?

• Look at the share of over-ask sales and the median list-to-sale ratio; frequent over-ask outcomes and low days to pending suggest continued competition in select segments.