Central Florida’s real estate market experienced a notable slowdown in August 2025, with decreases in sales, new listings, and overall inventory. Despite a slight dip in interest rates to 6.4%, the market is showing signs of shifting towards a buyer’s advantage, with homes taking longer to sell.
Key Takeaways
- Sales volume dropped by 9.6% compared to July.
- Inventory levels saw a 1.9% decrease.
- New listings fell by 11.5%.
- The median home price declined by 1.8%.
- Homes spent an average of 75 days on the market.
State of the Market
August 2025 saw a 9.6% decrease in overall sales compared to July, with 2,306 transactions compared to 2,551 the previous month. Interest rates reached their lowest point of the year at 6.4%, a slight drop from July’s 6.5%. However, this did not fully counteract the declining sales figures.
Inventory also contracted by 1.9%, reaching 13,306 units in August from 13,557 in July. New listings experienced a more significant decline of 11.5%, with 3,353 homes entering the market in August, down from 3,788 in July. Pending sales also decreased by 2.2%.
Homes remained on the market longer, with the average days on market (DOM) increasing from 69 in July to 75 in August. The median home price saw a slight decrease of 1.8%, settling at $382,950 in August, down from $389,999 in July.
Lawrence Bellido, president of the Orlando Regional REALTOR® Association, commented that the combination of lower inventory, longer market times, and the year’s lowest interest rates presents a favorable environment for buyers. He advised sellers to price their homes realistically to avoid extended listing periods and potential price reductions.
Inventory Analysis
The Orlando area’s housing supply increased to 5.77 months in August, a rise of 8.6% from July’s 5.31 months. This brings the supply closer to the six-month mark, which is considered a balanced market. For context, August 2024 had a significantly lower supply of 4.34 months.
Sales Snapshot by Property Type
- Single-Family Homes: Sales decreased by 10.7% from July to August, with 1,808 units sold. The median price for single-family homes was $415,000.
- Condos: Sales saw a 6.0% increase, with 282 units sold in August. The median price for condos was $200,000.
- Townhouses/Villas: Sales declined by 16.9%, with 216 units sold. The median price for townhouses/villas was $330,000.
Distressed properties, including bank-owned homes and short sales, accounted for 1.3% of all sales, with 29 such homes sold in August. This represents a 52.8% increase from July.