If you’ve been waiting for a moment when buyers regain some leverage in the Orlando housing market—this might be it. But don’t mistake more choices for less competition. As someone who’s followed Florida’s real estate trends for years, I can tell you: high inventory is only half the story.
Is Orlando’s Housing Market Stabilizing as Inventory Hits a 14-Year High?
According to new data released by the Orlando Regional Realtor Association (ORRA) in June 2025, active home listings hit a 14-year high, reaching 13,957 in May—marking the largest inventory since 2011. At the same time, annual home sales dropped by 12.3%, reflecting a broader cooling trend across all property types. Despite this, prices held steady and mortgage rates inched up to 6.8%.
4 Key Takeaways from the Numbers
1. Inventory Surge Signals a Buyer’s Market in the Making
A 5.47-month supply suggests we’re closing in on the six-month threshold that indicates a balanced market. Compared to just 3.53 months in May 2024, this shift is massive. More listings = more leverage for buyers, especially those who were priced out in recent years.
2. Price Stability Hints at Seller Resilience
Despite weaker sales, median home prices remained virtually unchanged at $390,000. This stability suggests buyers and sellers are holding firm on pricing—for now. But if inventory continues to climb without matching demand, price adjustments could follow.
3. Rising Rates May Be Slowing Buyer Urgency
The average interest rate rose from 6.6% to 6.8%, and that increase—though seemingly small—can significantly affect Mortgage payments. For many buyers, it’s enough to cause hesitation or force reevaluation of budgets.
4. Modest Monthly Gains Offer a Silver Lining
While year-over-year sales are down, month-over-month transactions actually rose by 3.7%. Pending sales are also slightly up. That suggests some buyers are still active—and potentially taking advantage of wider inventory.
What Should You Do Now?
For Buyers
- Shop smarter, not faster. With more listings and steady prices, there’s less pressure to rush—but still a need to act decisively on good deals.
- Get pre-approved now. Lock in rates before they climb further.
- Look beyond surface appeal. Homes may linger longer on the market, creating opportunities for value-based negotiation.
For Sellers
- Price it right from the start. Overpricing in this environment means sitting unsold while buyers explore better-priced alternatives.
- Presentation matters. Professional staging and top-tier photos can set your listing apart in a crowded market.
- Be flexible. With more competition, small incentives (like closing cost credits) can make a big difference.
What Is a “Balanced Market”?
A balanced housing market typically has 5 to 6 months of inventory, meaning the supply of homes matches buyer demand. It offers a middle ground where neither buyers nor sellers have a clear advantage.
A Note to Investors
This environment could present a unique opening. Rising inventory and flat pricing—combined with modest demand—make off-market deals, flips, or rental acquisitions more viable. The key? Focus on fundamentals like cash flow and long-term location value, especially in a high-rate climate.
Reader Q&A
Will home prices drop if inventory keeps rising?
If supply continues outpacing demand, prices could soften—especially for mid-tier and older homes. But so far, prices are holding steady.
Is it a good time to invest in Orlando real estate?
It depends on your time horizon. Long-term investors may find opportunities in neighborhoods with strong rental demand and price resilience.
Should I wait for mortgage rates to fall?
Rates may fluctuate, but timing the market perfectly is tough. Instead, consider buying now with a plan to refinance later if rates drop.
Final Thought
Is this a cooling market or just a market finding its footing? That depends on what happens next with interest rates and job growth in the region. But either way, Orlando is entering a new chapter—and for savvy buyers and sellers, it could be the most strategic one yet.
