Santa Monica, CA 90405 Real Estate Market Report

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

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Executive Overview

The Santa Monica market, particularly in the 90405 ZIP code, is currently characterized by a median sold price of $2,395,000, reflecting a stable market despite a broader trend of price softness. The neighborhood has experienced a slight appreciation, with the market showing resilience in the face of elevated interest rates that continue to impact buyer affordability. The median days on market stands at 258, indicating a slower sales velocity and a shift towards a more balanced market, where homes are selling near their asking prices, albeit with longer wait times for buyers and sellers alike.

Transaction activity appears moderate, with elevated inventory levels suggesting a slight excess supply relative to sales activity. This condition may indicate a need for sellers to adjust expectations to align with the current market dynamics. The median listing price is reported at $2,772,450, which presents a notable gap compared to the sold price, highlighting potential pricing friction as the market seeks equilibrium.

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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 near 6.01% in the Santa Monica CA 90405 area are 0.84% lower than the 6.85% average recorded one year ago, presenting a cost opportunity for refinancing.

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. $2,395,000 is the median sold price, indicating a stable market despite broader price softness.

2. The median days on market of 258 suggests a slower sales velocity, reflecting a shift towards a more balanced market.

3. Elevated inventory levels indicate excess supply relative to sales activity, which may pressure sellers to adjust listing prices.

4. The median listing price of $2,772,450 shows a significant gap compared to the sold price, suggesting potential pricing friction in the market.

5. Elevated interest rate pressure continues to impact buyer affordability, contributing to a neutral market temperature.

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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.