Marco Island Market Trends
March 2025

Market Type: Buyer's Market

The buyer's market continues holding steady, with some interesting month-over-month changes. The sold to list price ratio has seen a marked increase from last month, meaning homes sold closer to their list price. While the median sold price has dropped from last month’s high of $1,450,000, it has shown an overall upward trend since September 2024, where it was $850,000.

Key Metrics:

• Months of Inventory: 11.37
  A slight decrease of 0.61% from February.

• Sold to List Price Ratio: 98.9%
  A notable increase of 6.45% month-over-month, meaning buyers paid closer to the list price. Although only a short-term snapshot of last month, it is a relatively large shift and worth keeping a closer eye on going forward.

• Median Days: 69
  A modest increase of 1.47%, continuing to reflect a buyer's market.

• Median Sold Price: $1,150,000
  A decrease of 20.69% from February, where it reached a 5-year high of $1,450,000. Despite the recent decrease, the median sold price has overall been trending upward since September of last year.

What This Means for You:

• Home Buyers: The market remains favorable, with buyers still having the upper hand. However, the recent increase in the sold to list price ratio could suggest that competition may be heating up, and/or more accurate pricing by sellers (however, just as recently as February we saw 40.3% of homes have a price reduction).

• Home Sellers: While the market favors buyers, the increase in the sold to list price ratio could be a positive sign. Pricing your home competitively and showcasing its best features remain crucial.

• Investors: The current mix of market conditions offers opportunities for strategic investments. With days on market and inventory holding relatively stable and favorable for buyers, now might be a good time to explore potential acquisitions. Though it remains a buyer's market, indicators of growing competition could be starting to surface—median sold price trending upward since September, homes selling closer to list price last month—and are worth monitoring going forward.

Insider Tip: Unlocking Investment Opportunities with DSCR Loans

If you’ve been eyeing investment properties in Marco Island but feel limited by the traditional loan process, there’s an alternative you should know about—DSCR loans.

What’s a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. Unlike traditional mortgages, which rely heavily on your personal income and tax returns, DSCR loans focus on the property’s income potential to determine eligibility.

In simpler terms: if the property makes enough money to cover the loan payments, you could qualify—even without a high personal income or W-2s.

Why Investors Love DSCR Loans

1. No Personal Income Requirements
   Your ability to repay the loan is measured by the rental income the property can generate—not your paycheck.

2. Faster, Less Paperwork
   Since these loans don't require the usual stack of personal financial documents, the approval process is generally quicker.

3. Great for Portfolio Expansion
   Want to grow your real estate portfolio without running into income caps or debt-to-income limits? DSCR loans offer more flexibility.

4. Works for Short-Term and Long-Term Rentals
   Whether you're buying a vacation rental home or a long-term condo, DSCR loans can work for both.

How DSCR is Calculated

To qualify for a DSCR loan, lenders look at something called the Debt Service Coverage Ratio (DSCR)—which basically tells them if the property's income is enough to cover its monthly expenses:

A DSCR of 1 or higher is generally considered good. That means the property earns at least enough to cover its mortgage and other costs. Some lenders may offer flexibility if other factors (like your credit or down payment) are favorable.

If the result is 1.25, for example, that means your rental income is 25% higher than your total monthly property expenses—including mortgage payments, taxes, insurance, and HOA dues. That’s a strong position for loan approval.

Marco Island is DSCR-Friendly

With strong rental demand and high seasonal income potential, Marco Island is an excellent fit for this type of financing. Many buyers are using DSCR loans to scoop up vacation rentals and income-producing properties across the island—without jumping through traditional loan hoops.

Is a DSCR Loan Right for You?

If you’re self-employed, own multiple properties, or want to avoid the red tape of conventional lending, DSCR loans could be your ticket in. As always, it’s best to work with a mortgage pro familiar with DSCR loans and local real estate dynamics.

Featured Listing

I’m excited to introduce a new listing I just brought on the market this month: 140 Seaview Ct #302N. It’s a gorgeous 2-bed, 2-bath condo with Gulf views and direct beach access — one of those spots that checks a lot of boxes for both lifestyle and long-term value. With strong rental appeal and solid cash flow potential, it could also be a great fit for investors exploring DSCR-friendly opportunities on Marco Island.