Santa Monica, CA 90405 Real Estate Market Report

ZIP Code: 90405
Report Date: April 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The real estate market in Santa Monica as of April 2026 is characterized by a median sold price of $2,195,000, reflecting modest appreciation in home values. This indicates a stable market environment, although it is important to note that the neighborhood has increased 0% since 2023, suggesting a plateau in price growth. The median listing price stands at $2,495,000, which creates a notable gap between asking and selling prices, indicating potential pricing friction as sellers adjust expectations to align with market realities.

Market activity shows moderate transaction volume with 309 days as the median days on market, suggesting slower sales velocity. The inventory conditions are marked by elevated inventory levels, with excess supply relative to sales activity. This balance allows buyers increased negotiation power, despite the overall market being classified as neutral. Furthermore, the rental market is experiencing a downturn, with a median market rent of $3,420, reflecting a downward trend in rental prices year-over-year, which may influence buyer sentiment in the housing market.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Santa Monica, CA are averaging 6.38%, which is 0.71% higher than the average rate of 5.67% observed in March 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $2,195,000 indicates stable home values in Santa Monica despite a 0% change since 2023, suggesting a plateau in price growth.

2. With a median days on market of 309, the market is experiencing slower sales velocity, which may indicate a need for sellers to adjust pricing strategies.

3. The median listing price of $2,495,000 shows a significant gap compared to the sold price, indicating potential pricing friction and seller expectations that may not align with market realities.

4. Elevated inventory levels suggest excess supply relative to sales activity, providing buyers with increased negotiation power in the current market.

5. The rental market is facing challenges, with a median market rent of $3,420 reflecting a downward trend, which may impact overall buyer sentiment in the housing market.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.