Orlando Real Estate Market Update: Week of August 18-24, 2025

The Orlando real estate market demonstrated signs of stabilization during the week of August 18-24, 2025, amid a broader Florida trend of modest price softening. Inventory levels climbed steadily, offering buyers more choices and contributing to a slight dip in median prices city-wide. However, Orlando's resilience shines through, bolstered by robust population growth and job gains that continue to attract newcomers to this vibrant region.

Statewide, home prices edged down modestly YoY, but Orlando's city area bucked the trend in select segments, particularly luxury properties in suburbs like Winter Park and Windermere. Mortgage rates stabilizing around 6.5% sparked a modest uptick in buyer demand, though bidding wars have become rarer compared to the frenzied pace of prior years. Seller activity ramped up with an influx of new listings, yet overall sales volume remained tempered by lingering economic uncertainties.

This shift points toward an emerging buyer's market, with inventory surging 21-22% YoY in certain categories. Suburbs like Lake Nona and Clermont are seeing increased options, while affordable segments experience longer days on market (DOM). For investors and homebuyers, this could signal prime entry points, especially as long-term fundamentals—such as Central Florida's population boom—remain strong.

Trends in Buyer Demand, Seller Activity, and Bidding Wars

• Buyer Demand: With mortgage rates holding steady, we've seen a modest resurgence in activity. Buyers are leveraging increased inventory—particularly in condos and townhouses—to negotiate better terms. Central Florida's population growth of 78,500 new residents YoY underpins sustained demand, though high costs are deterring some entry-level participants. As an expert tip: If you're buying, focus on suburbs like Clermont for value-driven options amid this shift.

• Seller Activity: Sellers are stepping up, with new listings jumping 12.2% YoY and 6.1% MoM. This reflects confidence in capturing still-elevated prices before potential further softening. However, prolonged DOM suggests pricing strategies must be sharp—overpricing could lead to stagnation.

• Bidding Wars: A notable decline YoY, thanks to 21-22% higher inventory reducing overall competitiveness. In luxury enclaves like Windermere, multiple offers are less common, though properties over $1M still draw interest. This eases pressure on buyers, making it a strategic time to enter without the frenzy of past markets.

New Developments, Zoning Changes, and Infrastructure Projects

Orlando's real estate landscape is evolving rapidly with policy and infrastructure advancements designed to accommodate growth. The 2025 Growth Management Plan Refresh is streamlining development processes, making it easier to bring new projects online. Mayor Buddy Dyer's housing initiative is modernizing zoning to allow greater density, height, and mixed-use developments without protracted rezonings—poised to accelerate multi-family builds in areas like Lake Nona and Clermont.

State-level support comes from amendments to Florida's 2025 Live Local Act, which expedite zoning and density approvals for multi-family housing. Locally, the Orange County Board of Zoning Adjustment addressed changes on August 7, with more on the horizon, emphasizing smart, sustainable development.

Infrastructure megaprojects are also key: Expansions in transportation and mixed-use spaces, including four major 2025 initiatives in Orlando, will enhance connectivity and appeal in suburbs like Windermere and Winter Garden. These efforts are expected to boost supply, particularly in affordable segments, alleviating inventory strains in high-growth zones.

Economic Factors Influencing the Region

Several macroeconomic elements are at play:

• Interest Rates: As of August 25, 2025, 30-year fixed mortgages stood at 6.54%, with 15-year rates at 5.90%. This stability, down from 2024 highs, is encouraging buyer re-entry without dramatic fluctuations.

• Employment Trends: The Orlando city area added 31,600 jobs YoY through June 2025, a 2.1% growth rate surpassing state and national averages. July's nonfarm payroll increases in Florida bolster sectors like tourism and tech, directly supporting housing demand.

• Population Growth: The influx of 78,500 residents to Central Florida YoY is a double-edged sword—driving demand while challenging supply in suburbs like Winter Garden.

Insights from Local Reports and Expert Commentary

ORRA's August reports paint a picture of a balancing market, with experts highlighting "more options for both buyers and sellers" as supply rises. Local Realtors, stress Orlando's enduring appeal: prices hold in luxury tiers but soften elsewhere, giving buyers leverage.