Central Florida’s real estate market experienced a notable shift in September 2025, characterized by the lowest interest rates seen in a year and a slight decrease in median home prices. While overall sales saw a dip, pending sales increased, suggesting a market finding a healthier balance between buyers and sellers.
Key Takeaways
- Interest rates dropped to 6.1% in September, the lowest since September 2024.
- The median home price declined for the third consecutive month, settling at $378,000.
- Inventory decreased for the fourth month in a row, though the months of supply edged up slightly.
- Homes spent less time on the market, indicating increased activity.
- Pending sales saw a rise, signaling growing buyer interest.
State of the Market
September 2025 brought a welcome change for Central Florida homebuyers as interest rates fell to 6.1%, a decrease from August’s 6.4% and the lowest point since September of the previous year. This easing of borrowing costs coincided with a continued downward trend in median home prices, which reached $378,000, down 1.3% from August. This marks the third consecutive month of price declines.
Inventory levels also continued to shrink, with a 2.2% decrease from August to September, bringing the total to 13,007 homes. Despite this, the supply of homes available rose slightly to 5.79 months, nearing the six-month mark considered a balanced market. For context, September 2024 had a significantly tighter supply of 5.14 months.
Homes spent an average of 72 days on the market in September, a slight improvement from 75 days in August. This, coupled with a 3.0% increase in pending sales (3,798 compared to 3,687), suggests a market gaining momentum. However, overall sales volume saw a marginal decrease of 2.6%, with 2,245 transactions in September compared to 2,306 in August. New listings saw a modest uptick of 0.5%.
Market Commentary
Lawrence Bellido, president of the Orlando Regional REALTOR® Association, commented on the market’s evolution. "Falling interest rates are beginning to inject some welcomed energy into the market. At the same time, a slight dip in prices and days on market suggests the market is finding balance," Bellido stated. He added, "We’re not seeing the frenzy of a few years ago, but we’re seeing movement – a healthy pace that benefits both buyers and sellers. These trends could set the stage for an active fall market in Central Florida."
Sales Snapshot by Property Type
- Single-Family Homes: 1,793 sold in September, a 0.8% decrease from August. The median price was $406,000.
- Condos: 247 sold, a 12.4% decrease from August. The median price stood at $205,000.
- Townhouses/Villas: 205 sold, down 5.1% from August. The median price was $320,000.
- Distressed Homes: 28 distressed properties accounted for 1.2% of all sales, a 3.4% decrease from August.