Orlando Real Estate Market Update – February 2025

As we step into February 2025, the Orlando real estate market is showing some key trends that both buyers and sellers should keep an eye on. Here’s a quick breakdown of the latest market movements:

1. Home Prices Are Softening

Orlando’s median home price has dipped by 4.34% year-over-year, now sitting at $419,950. With more inventory available and demand slightly cooling, buyers have better negotiating power than in previous months.

2. Inventory Levels Are Rising

Housing inventory has surged by over 50% compared to last year, giving buyers more choices and reducing bidding wars. This is a great time for those looking to enter the market without facing as much competition.

3. Mortgage Rates Remain High

The average 30-year fixed mortgage rate is hovering around 6.93%, impacting affordability. Buyers are being more cautious with their purchasing decisions, and some are exploring alternative financing options.

4. Rising Insurance Costs Affecting Affordability

Florida homeowners are facing increasing insurance premiums, with some experiencing hikes of up to 400% in recent years. These additional costs are making homeownership more expensive and influencing buying decisions.

5. Condo Market Facing Adjustments

New safety regulations and higher maintenance costs are leading to increased HOA fees. As a result, more condo owners are putting their properties on the market, creating new opportunities for buyers but also requiring careful budgeting for future expenses.

What This Means for You

For buyers, this shift presents an opportunity to secure a home at a better price, especially with more inventory available. Sellers, on the other hand, should be prepared to price competitively and showcase their property’s value to attract serious buyers.

At Suncasa, we’re here to help you navigate the evolving Orlando real estate market. Whether you’re buying, selling, or investing, our team is ready to guide you through every step.

Have questions about the market? Let’s chat!