As we approach the end of July 2025, the Orlando real estate market continues to offer a mix of opportunities and challenges for home buyers. With its vibrant economy driven by tourism, tech, and population growth, Orlando remains a hotspot, but recent trends show a shift toward a more balanced environment. Home prices have stabilized or slightly declined in some areas, inventory is up, and mortgage rates are hovering around 6.86%, providing breathing room after years of rapid appreciation. This post dives deep into the current dynamics, with a special focus on the desirable suburbs of Windermere, Winter Garden, and Winter Park—known for their family-friendly vibes, upscale amenities, and proximity to downtown Orlando and attractions like Disney World. Whether you're eyeing a luxury estate in Windermere or a charming home in Winter Park, we'll equip you with data-driven insights to make an informed decision.

Understanding the Orlando Housing Market in Mid-2025

Orlando's market has transitioned from a seller's frenzy to a neutral state, where supply and demand are more aligned. This cooling is influenced by higher interest rates and increased inventory, but strong fundamentals like job growth and in-migration keep it resilient.

Overall Price Trends and Regional Variations

In June 2025, the median sold price in Orlando stood at $395,402, up 2.2% year-over-year (YoY), with a median price per square foot of $242. However, Zillow reports an average home value of $381,502, down 2.9% YoY, highlighting some variability in data sources. Homes typically go pending in about 30 days, indicating moderate competition.

Regionally, suburbs show distinct patterns:

Data sourced from Rocket Homes. These suburbs offer premium living: Windermere's luxury homes appeal to high-end buyers, Winter Garden's historic charm and new developments suit families, and Winter Park's cultural scene attracts professionals. Notably, all areas are neutral markets now, compared to seller's markets a year ago, giving buyers more negotiating power.

For buyers, this means potential deals in cooling spots like Winter Park, where prices dropped the most, but expect premium pricing in Windermere due to its exclusivity.

Inventory Levels: More Choices for Buyers

Inventory in Orlando reached 5,807 homes in June 2025, up 2.3% month-over-month (MoM), signaling a balanced supply. Across Florida, inventory is at its highest since 2019, with Orlando seeing a 41.5% YoY increase to over 11,600 active listings late last year. In the suburbs:

• Windermere: 371 homes, up 2.8% MoM.

• Winter Garden: 958 homes, down 1.9% MoM but still ample.

• Winter Park: 569 homes, down 5% MoM.

This buildup reduces bidding wars—63.4% of Orlando homes sold below asking in June, with similar trends in suburbs (e.g., 78.3% below in Windermere). Buyers can now request concessions, like repairs or closing costs, especially in Winter Garden where sales dipped 21.7% MoM.

Mortgage Rates and Affordability

Rates averaged 6.86% in mid-2025, down slightly from peaks above 7% earlier in the year. While this improves affordability, high prices still strain budgets—Orlando's median payment consumes about 35% of median income. In upscale Windermere, where medians exceed $700K, buyers may need jumbo loans. Insight: Lock in rates now, as potential Fed cuts could spark demand and reverse inventory gains.

Spotlight on Key Suburbs

Windermere: Luxury with a Cooling Edge

Windermere, famed for its lakeside estates and golf communities, saw 60 homes sold in June, with prices down 3.6% YoY to $740K. Zillow's average value is $713,196, down 1.9% YoY. Days on market jumped to 84, up 91.9% YoY, indicating buyers have time to shop. Luxury segments remain resilient, with 5-bedroom homes at $1.3M. For buyers: Target properties over 90 days listed (30% of sales) for better deals.

Winter Garden: Family-Friendly and Accessible

In Winter Garden, with its walkable downtown and new builds, the median sold price was $563,670, down 2.8% YoY. Zillow reports $581,656 average, down 3.1%. Inventory at 958 homes offers choices, though sales fell 21.7% MoM. Average days: 57, up 31.1%. Buyers: Focus on 3-4 bedroom homes ($460K-$630K), ideal for families, and negotiate on the 73.6% selling below asking.

Winter Park: Cultural Charm with Value Opportunities

Winter Park's tree-lined streets and arts scene saw medians at $460,000, down 6.9% YoY—the steepest drop among the group. Zillow: $468,479 average, down 2.7%. With 84 sales and inventory at 569 (down 5% MoM), it's still active, with homes pending in 26 days. Days on market: 41, relatively quick. Buyers: Capitalize on 69% below-asking sales for entry-level luxury.

Predictions for the Rest of 2025 and Beyond

Orlando is poised for growth, ranked in the Top 10 fastest-growing markets, with a projected 12.1% rise in median prices from $380K and 15.2% increase in sales. Inventory could stabilize at 6+ months, but population influx (driven by remote work and retirees) may push demand. Suburbs like Winter Garden and Windermere could see renewed interest from families, while Winter Park benefits from cultural investments. Overall, expect steady appreciation through 2026, tempered by rates. Risk: If rates drop sharply, competition could heat up.