April Marco Island Real Estate Market Report

Inflation has pushed mortgage rates past 5% for the first time in over ten years! They have increased by 1.8 percentage points just since the beginning of the year. This increase causes the monthly mortgage payment on a median-priced home to rise by about $400. With wages decreasing (by 2.7% in March alone, compared to prior years) potential homeowners will find it difficult to have to spend more of their budget on housing. At this rate, about 16 million households will be priced out of the market this year. Unfortunately, NAR predicts this will cause home sales activity to drop by about 10% in 2022. The Fed’s response will be determined by the extent of the inflation when they meet in May. 

Locally, median sale prices have continued to increase on houses by 72%, condos by 33%, and lots by 220%. The inventory also makes buying difficult, as it is down by 26%. There is not even time for property to be considered for very long, as days on the market continue to drop in all categories!

Data courtesy of Marco Island Area Association of Realtors® Multiple Listing Service (MLS) for the period April 2021 and April 2022. For the purpose of this report, the following property types are measured: single family homes (RE1), condos (RE2), and lots. Decimals rounded to the nearest whole number.