Has Orlando’s Housing Market Finally Corrected? What Buyers and Sel...

How has Orlando’s housing market changed in 2025

Through 2025, Orlando moved from a red hot seller environment toward balance. Measurable shifts include higher median days on market and a build in months of supply. Federal Reserve Economic Data shows the Orlando-Kissimmee-Sanford CBSA median days on market at 77 days in August 2025 Source: FRED. Local snapshots from the Orlando Regional REALTOR® Association in mid-summer showed inventory around the mid-teens in thousands with supply rising toward balanced conditions Source: ORRA, and its July monthly report details month-to-month movements in listings and supply Source: ORRA PDF.

Key normalizers to watch

Median days on market trending higher - buyers get more time to evaluate.
Months of supply moving toward 5 to 7 months in several submarkets - a more balanced feel.
Price behavior diverges by neighborhood - microtrends dictate outcomes.

Regionally, the FHFA House Price Index for the Orlando MSA shows prices oscillating rather than collapsing through 2024 and into 2025 Source: FHFA via FRED, while the national rate backdrop remains a swing factor. The Freddie Mac PMMS placed the 30-year fixed around 6.30% on Sept 25, 2025 Source: Freddie Mac PMMS. Population flows into Florida and its metros also continue to shape demand Source: U.S. Census Bureau.

Is this a correction or a crash

A correction is a return toward fundamentals after outsized gains. Orlando looks like a soft correction. Inventory is up, DOM is up, and pricing is flatter. But lending standards are tighter than the mid-2000s, most owners have equity cushions, and job growth around key hubs continues. In short - cooling and sorting, not capitulation.

Signal	Late 2025 Read	Meaning
Prices	Flat to mild declines by segment	Normalization after 2020-2022 surge
Days on Market	Rising to 70-90+ in weaker areas	Buyers can negotiate
Months of Supply	Near balanced in many ZIPs	Less scarcity
Price Cuts	More frequent	Overpricing gets punished
Microtrends	High variance by neighborhood	Location quality matters

Data context: FRED DOM, ORRA, FHFA HPI, Freddie Mac PMMS.

Buyer advantages and watchouts heading into 2026

Pros for buyers

More choice across single family, townhome, and condo segments.
Negotiation leverage on price, repairs, and seller paid closing costs.
Time to compare and inspect - fewer rushed bidding scenarios.

Watchouts

Rate volatility can offset price softness - track weekly PMMS updates Freddie Mac.
Not all discounts are equal - weaker locations may underperform longer.
New builds with heavy incentives may carry HOA, tax, or CDD tradeoffs.

Seller playbook for a slower, pickier market

Price with the market. Use the most recent pending comps and absorption, not last spring’s closes.
Win on presentation. Curb appeal, light updates, and smart home touches boost showability.
Be flexible. Consider buyer concessions or rate buydowns if DOM climbs past your submarket median.
Mind the calendar. Seasonality and school calendars still influence demand pulses.

Client story: A relocating family targeting Lake Nona Medical City felt paralyzed by fast 2022-style prices. In today’s climate they compared four similar homes over three weeks, negotiated for repairs and a modest credit, and landed a better aligned home without rushing.

Microtrends: neighborhood dynamics you should know

Lake Nona & Medical City

Strong amenity base, schools, and proximity to Medical City sustain demand. New phases may require incentives to compete, while well-located single family homes remain resilient.

Winter Park

Historic charm, walkability, cultural amenities. Character plus location creates relative price stability even as the wider market normalizes.

Baldwin Park

Planned community feel and parks keep demand steady. Attached product may see more negotiation room than detached listings of similar size.

Migration and metro growth context: U.S. Census Bureau 2024 metro estimates.

Costs, timelines, and practical expectations

Late 2025 transaction timelines typically span 45 to 60 days from contract to close in financed deals, longer if repairs or appraisal issues arise. With DOM trending higher than 2023-2024, budget a longer window for showings and negotiations. Monitor ORRA’s monthly narrative for fresh absorption and supply reads ORRA.

Pro tip

If your listing crosses your ZIP’s median DOM without strong traffic, re-evaluate price and incentives. Tie your strategy to current pendings and the most recent two weeks of showing feedback.

Outlook for 2026

Prices: Stable to mildly negative in weaker segments. Choice locations hold value better.
Inventory: Elevated but choppier as sellers test list prices.
Rates: If 30-year rates drift under the mid-6s, expect a demand pulse Freddie Mac PMMS.
DOM: Likely to remain above 2021-2022 norms. Expect patience to be rewarded.

Key takeaways

For buyers

Use time and comps to your advantage. Negotiate smartly.
Prioritize location quality over trophy finishes.
Watch total monthly cost, not just price - rate and insurance matter.

Start a custom home search

For sellers

Lead with realistic pricing and superior presentation.
Consider targeted credits or buydowns if traffic stalls.
Measure against the newest pendings and median DOM in your micro-market.

Get a strategic pricing review

FAQs

Is Orlando a buyer’s market now

In many submarkets, yes. Rising months of supply and longer DOM indicate buyers have more leverage. Keep an eye on ORRA’s monthly narrative for the latest metro snapshot ORRA and metro-wide DOM at the St. Louis Fed FRED.

Will prices fall a lot in 2026

A broad collapse looks unlikely. Expect selective softness in over-supplied or fringe areas and relative stability in high-demand neighborhoods. Track FHFA’s HPI for directional context FHFA via FRED.

Should I wait for rates to drop before I buy

It depends on your timeline and budget. If rates fall, demand could pop and reduce your negotiation leverage. Monitor weekly averages on the Freddie Mac PMMS PMMS and run payment scenarios with your lender.

How long should I expect my home to take to sell

Many areas are seeing 60-90 days on market. Well-prepared listings in top neighborhoods can sell faster. Use ORRA’s monthly read and your ZIP’s recent pendings as your benchmark.