Orlando Real Estate Market
Market Overview
The Orlando housing market has experienced moderate price growth and increasing inventory through early 2025. The median home price in January was around $395,000—about 7 percent higher than the previous year. By March, prices held steady near $405,000, showing stable but slower appreciation.
Inventory has grown significantly. Listings increased by more than 40 percent from the year before, bringing more balance to a market that was previously tight. Months of supply now sit between 5.8 and 6.8, approaching buyer-friendly conditions.
Homes are also taking longer to sell. The average days on market rose from the low 50s in January to more than 70 days by March, a notable shift from previous years when homes often sold within weeks.
Sales TrendsClosed sales started the year on a slower note, with a drop in activity in January compared to the same month the year before. February saw a strong rebound, with sales up over 20 percent compared to January, although still slightly down year-over-year. March closings were similar to the previous year, indicating some stabilization.
Pending sales and new contracts increased during the early spring months, signaling renewed buyer interest. However, these gains are happening at a slower pace than in the recent past.
Mortgage Rates and AffordabilityInterest rates in early 2025 have remained in the range of 6.7 to 6.8 percent. These rates continue to impact purchasing power for many buyers, particularly first-timers and those with tight budgets. However, the increase in housing supply has helped balance affordability challenges somewhat.
Key Market InsightsThe Orlando market is transitioning from a strong seller's market to a more balanced environment. Rising inventory, slower sales, and longer listing times suggest buyers have more leverage than in recent years. At the same time, home prices have not declined significantly, indicating overall market stability.
Seasonal trends have returned, with more activity seen in the spring months. This suggests continued interest in the region, despite affordability concerns.
Orlando, like many parts of Florida, faces ongoing challenges such as rising insurance premiums, elevated building costs, and potential demand slowdowns tied to migration trends. These factors could shape the market through the rest of 2025.
What This MeansFor Buyers:
Buyers now have more options and time to make decisions. Negotiating power has improved, and conditions are less competitive than in recent years. The slower pace of sales may allow for contingencies or price adjustments.
For Sellers:
Selling is still possible at favorable prices, but success increasingly depends on proper pricing and presentation. Homes that are move-in ready and listed competitively are more likely to attract serious offers without requiring price cuts.
For Investors:
Rising inventory and stable pricing may create attractive opportunities, particularly in properties that have sat on the market. However, atten
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