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 median sold price in Santa Monica stands at $2,395,000, reflecting a market that is stabilizing after previous fluctuations. While there are no specific year-over-year trends available, the current pricing indicates a potential transition phase, as the market appears to be cooling from its previous heat to a more neutral environment. This suggests that buyers and sellers are adjusting their expectations, which may lead to a more balanced market moving forward.

Market velocity is characterized by slower sales activity, with properties spending a median of 249 days on the market. This extended duration indicates a shift towards a more cautious approach among buyers, likely influenced by elevated interest rate pressure, which currently averages around 6.13% for 30-year fixed mortgages. The overall inventory conditions show elevated inventory levels relative to sales activity, indicating a potential excess supply that may impact pricing dynamics in the near term.

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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 the Santa Monica, CA area are averaging around 6.13% as of mid-February 2026, which is 0.22% lower than the 6.35% average seen in mid-January 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 $2,395,000 suggests a market adjusting to new buyer expectations amidst changing economic conditions.

2. Properties are taking a median of 249 days on the market, indicating slower sales velocity and a cautious buyer sentiment.

3. Elevated inventory levels relative to sales activity may create pricing friction in the near future.

4. The median market rent of $3,420 reflects strong rental demand, despite recent short-term declines.

5. Current interest rate pressure is elevated, which may further influence buyer behavior and market dynamics.

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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.