News Summary
The Florida housing market, particularly in Orlando, is seeing a cooling trend with home prices moderately declining. Factors such as rising inventory and increased cancellation rates are influencing the market. The median single-family home price in Orlando has decreased, while listings have surged. Despite the challenges, buyers may find more options and negotiating power as sales dynamics shift. Experts predict ongoing changes in housing prices throughout Florida, reflecting a transition in the market that could enhance affordability for prospective buyers.
Florida Housing Market Experiences Modest Price Corrections
The Florida housing market is undergoing a cooling trend, especially evident in Orlando, where home purchase cancellation rates have risen above the national average. As of June 2025, the median single-family home price in Orlando decreased by 0.4% compared to the previous year, reaching $403,500. This trend is fueled by a significant increase in housing inventory and adjustments in sales activity, making affordability more attainable for prospective buyers.
Market Adjustments and Inventory Growth
In June 2025, Orlando reported a remarkable 27.8% year-over-year increase in the inventory of homes available for sale, amounting to 13,793 listings. Closed sales within the city fell by 3.4% year-on-year, totaling 2,513 transactions, signaling a market shift. Homes are now taking longer to sell, with the average time on the market increasing from 54 days to 67 days over the year.
Moreover, new listings showed a decline, dropping by 7% from the previous year with only 3,854 new entries reported in June. The active supply of single-family homes stands at 5.6 months, while condos and townhouses have a robust supply of 10 months.
Price Declines and Market Predictions
Statewide, Florida experienced a 3.5% year-over-year decrease in the median price of single-family homes, settling at $412,000 in June 2025. Similar price corrections were noted in the condominium sector, where prices fell by 7.7%, resulting in a median price of $300,000. Market predictions suggest that by mid-2026, approximately 24 Florida housing markets may see further price drops.
Impact of Mortgage Rates on Demand
The current mortgage rates, which fluctuate between 6% and 7%, have contributed to decreased demand as the cost of buying a home has risen. This inflation in borrowing costs is further compounded by a climate of uncertainty amongst buyers, leading to significant cancellation rates for home purchases.
Sales Environment Changes
Despite the modest price corrections, the Orlando housing market remains attractive. The city benefits from considerable job growth and a steady influx of new residents. However, the overall sales environment has become increasingly competitive, providing buyers with more options and negotiating power as inventory levels rise.
Additionally, the number of delistings has notably increased across the nation, placing pressure on sellers to price their homes realistically in order to attract buyers. Distressed sales, which include bank-owned and short sales, constituted 1.0% of sales in Orlando, reflecting an 18.2% increase from the previous month.
Conclusion
The Orlando housing market is in a transition phase, characterized by modest price corrections and rising inventory levels. Buyers can find opportunities amidst an increasingly competitive landscape, as home affordability may improve with continued adjustments in the market. As Florida housing trends further evolve, potential buyers and sellers alike will need to remain adaptive to the changing conditions.
Deeper Dive: News & Info About This Topic
- NORADA Real Estate Investments
- Newsweek
- WFTV
- Click Orlando
- Wikipedia: Orlando
- Encyclopedia Britannica: Florida
- Google Search: Florida housing market
- Google News: Orlando housing market
Author: STAFF HERE PETERSBURG WRITER
ST PETERSBURG STAFF WRITER The ST PETERSBURG STAFF WRITER represents the experienced team at HEREStPetersburg.com, your go-to source for actionable local news and information in St Petersburg, Pinellas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Grand Prix of St. Petersburg, Localtopia, and SHINE Mural Festival. Our coverage extends to key organizations like the St. Petersburg Area Chamber of Commerce and St. Pete Downtown Partnership, plus leading businesses in finance, manufacturing, and healthcare that power the local economy such as Raymond James Financial, Jabil, and Bayfront Health St. Petersburg. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
