Current Trends in the Orlando Housing Market: What You Need to Know
Are you considering buying or selling a home in Orlando? Understanding the current housing market trends is crucial for making informed decisions. The Orlando real estate landscape is undergoing some notable changes: inventory is increasing, median prices have slightly dipped, and new listings are on the rise. This shift indicates that buyers are gaining some leverage in the market.
Current Orlando Housing Market Trends
Home Sales
According to the Orlando Regional Realtor® Association, January 2025 saw 1,514 home sales, a significant 29.7% decrease from December’s 2,154 sales. While this decline might seem concerning, it’s typical for January to experience a slump as consumers refocus post-holiday.
Home Prices
In January 2025, the median home price in Orlando stood at $375,000, showing a slight drop from $380,000 in December.
- Key Insight: This $5,000 decrease may not seem substantial, but it reflects a cooldown in rapid price escalations that characterized the previous year.
Are Home Prices Dropping?
It’s premature to declare a significant drop in home prices based on just one month’s data. The slight decrease in the median price along with increased inventory signals a market that is trending toward greater balance.
Market Correction: This could be a correction rather than a crash, as the market stabilizes after the unprecedented pandemic boom.
Comparison with National Median Price
As of January 2025, the national median home price is approximately $396,900, which reflects a 4.8% year-over-year increase. In contrast, Orlando’s median of $375,000 presents an appealing option for buyers from more expensive regions.
| Metric | Orlando (January 2025) | National (January 2025) |
|---|---|---|
| Median Home Price | $375,000 | $396,900 |
| Year-over-Year Change | – | +4.8% |
Housing Supply
The Orlando housing market is witnessing a notable increase in supply. January’s inventory reached 11,697 units, marking a 16.4% rise from December’s 10,049 units—the highest level since July 2015.
- New Listings: There was a dramatic 68.1% surge in new listings from December to January, with 4,220 homes introduced to the market.
- Months of Supply: The supply of homes rose to 7.73 months, a 65.5% increase from December’s 4.67 months.
Buyer’s vs. Seller’s Market
A balanced market is typically characterized by around six months of supply. With Orlando now at 7.73 months, it’s leaning towards a buyer’s market.
- For Sellers: This means more competition; it’s vital to offer attractive terms and ensure homes are well-maintained.
- For Buyers: More options allow for negotiations and thorough inspections.
Key Market Trends
- Increased Inventory: Current trends indicate a significant rise in homes for sale.
- Slight Price Correction: The median home price dip indicates a stabilization of rapid appreciation.
- Impact of Rising Interest Rates: Higher rates are affecting affordability and buyer activity.
- Extended Market Times: Homes are averaging 74 days on the market, compared to 68 days in December.
- Increased Pending Sales: Pending sales rose by 24.8%, with 3,320 homes under contract in January.
Impact of High Mortgage Rates
As of early March 2025, the average 30-year fixed mortgage rate stands at 6.63%. Higher mortgage rates affect the market in several ways:
- For Buyers: Increased costs and lower affordability may reduce the pool of qualified buyers.
- For Sellers: Homes priced too high risk longer wait times on the market.
Additional Market Insights
- Distressed Homes: In January, there were 18 distressed sales, constituting 1.2% of the market, up from 17 in December—a small but notable increase to track.
- Market Comments: Lawrence Bellido, President of the Orlando Regional REALTOR® Association, indicates that the typical post-holiday slowdown in sales is complemented by increased new listings and pending sales.
Future Forecast for the Orlando Housing Market
Experts forecast a modest 1.5% increase in home values for the Orlando-Kissimmee-Sanford area from January 2025 to January 2026, suggesting stability rather than drastic changes.
Home Price Forecast Details
| Timeframe | Projected Change in Home Values |
|---|---|
| February 2025 | 0% |
| April 2025 | 0.2% |
| January 2025 – January 2026 | 1.5% |
Orlando vs. Other Florida Markets
Here’s how Orlando’s growth compares with other major Florida cities:
| Metro Area | Projected Change (Jan 2025 – Jan 2026) |
|---|---|
| Miami | 2.5% |
| Tampa | 1.9% |
| Orlando | 1.5% |
| Lakeland | 1.6% |
| Jacksonville | 1.3% |
| Deltona | 0.9% |
| Cape Coral | 0.9% |
| North Port | 0.8% |
Will the Market Crash?
While housing market fluctuations are always possible, current indicators suggest that a crash is unlikely. Instead, the data points to a sustainable growth rate that maintains market health.
What to Watch For
Future market conditions will be influenced by:
- Interest Rates: Mortgage rate adjustments will directly affect buyer affordability.
- Job Growth: A strong local economy bolstered by tourism and tech will drive demand.
- Inventory Levels: Changes in available housing stock will influence price trends.
Conclusion
The Orlando housing market appears to be entering a phase of increased opportunities for buyers. As inventory rises and price adjustments occur, it’s essential to stay informed. Whether you’re a buyer or seller, consulting with real estate professionals and staying updated on market trends are vital steps for making informed decisions.
For more detailed insights into the Orlando housing market, consider exploring Florida Realtors for expert analysis and resources.