Marco Island Home Sales Tick Up as Interest Rates Begin to Fall

MARCO ISLAND, Fla. — After months of cooling activity, the Marco Island housing market is showing the first signs of renewed momentum as home sales inched higher in October — a shift many local agents are crediting to recent declines in mortgage interest rates.

According to the latest data from the Marco Island Area Association of Realtors, total home sales rose 3.8% month-over-month, marking the first increase since early summer. The average sale price also nudged upward, reaching just over $1.46 million, while the median time on the market shortened slightly to 64 days.

“This is the first time in a while we’ve seen buyers start to move again,” said Jan Harrison, sales associate with Engel & Völkers Marco Island. “As soon as rates dipped below 7%, we noticed more showings and inquiries—especially from seasonal buyers looking to secure a property before the holidays.”

While cash sales still dominate the Marco Island market—making up roughly 56% of transactions—the slight relief in borrowing costs has reenergized financed buyers who had been sitting on the sidelines.

Economists say the change reflects a broader national trend as the Federal Reserve signals potential rate cuts heading into 2026. Lower borrowing costs are expected to spur activity in higher-end coastal markets like Marco Island, where affordability has remained a challenge despite steady demand.

Still, inventory remains tight. The island currently has just 3.4 months of supply, keeping conditions favorable for sellers and maintaining upward pressure on prices.

“Even a small drop in rates can make a noticeable difference in buyer confidence,” said Harrison. “We’re not expecting a frenzy, but we are expecting a strong winter season.”

As cooler weather draws northerners back to Southwest Florida, realtors say they’re bracing for a busier open-house circuit — and cautiously optimistic that Marco Island’s luxury market will continue to shine under sunnier financial skies.

🏠 Key Takeaway: Home sales are creeping upward, rates are easing, and Marco Island may be heading into a more balanced — yet still high-value — housing market this winter.