Morro Bay Housing Market Report – May 2026
Here's a look at how the Morro Bay, CA real estate market performed in May 2026, based on actual sold data from the MLS.
Market Snapshot
- Homes Sold: 16
- Median Sale Price: $901,250
- Average Sale Price: $988,872
- Average Price Per Sq Ft: $593
- Average Days on Market: 67
- Sale-to-List Price Ratio: 97.6%
Month-Over-Month Trends
Compared to April, the median sale price in Morro Bay moved 17.0% up (from $770,000 to $901,250). The number of homes sold was 15.8% down compared to the prior month (19 vs. 16). Average days on market shifted 62.1% down (177 days to 67 days).
Year-Over-Year Comparison
Compared to May 2025, the median sale price is 18.1% down (from $1,100,000 to $901,250). Sales volume is 45.5% up year-over-year.
What This Means
Morro Bay's real estate market is showing mixed signals this May, with encouraging momentum on price movement offset by some underlying softness. The median price jumped 17 percent month-over-month to $901,250, which looks promising on the surface, but that uptick likely reflects seasonal spring activity rather than sustained strength. More tellingly, the year-over-year median price is down 18 percent from May 2025, suggesting the market has cooled considerably over the past year as higher interest rates continue to weigh on buyer purchasing power.
The silver lining is in the days on market metric, which has compressed dramatically from 177 days to just 67 days. That's a significant shift suggesting homes are moving faster, possibly as spring buying season kicks into gear and inventory constraints ease slightly. The sale-to-list ratio of 97.6 percent indicates sellers still have some negotiating power, though they're not commanding the premium prices they might have hoped for a year ago.
With 60 active listings and a median asking price of $912,500, there's more choice for buyers than we've seen recently. The property mix remains heavily weighted toward single-family homes, which aligns with typical Morro Bay demand. Overall, this appears to be a stabilizing market rather than a rebounding one, with modest seasonal improvement but no indication of a major price recovery in the near term.
Morro Bay Sales by Zip Code
| Zip Code | Homes Sold | Median Price | Avg $/SqFt | Avg DOM |
|---|---|---|---|---|
| 93442 | 16 | $901,250 | $593 | 67 |
Sales by Property Type
| Property Type | Homes Sold | Median Price | Avg $/SqFt |
|---|---|---|---|
| SINGLE_FAMILY | 13 | $1,100,000 | $597 |
| CONDOS | 2 | $600,000 | $580 |
| CONDO | 1 | $615,000 | $569 |
Sales by Price Range
| Price Range | Homes Sold |
|---|---|
| $500K - $749K | 5 |
| $750K+ | 11 |
Current Active Listings
As of this report, there are 60 active listings in Morro Bay with a median asking price of $912,500 and an average of 112 days on market.
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