State of the Central Florida Market – August 2025
“Over the past month, we’ve seen a drop in inventory and homes sitting on the market for longer periods of time,” said Lawrence Bellido, president of the Orlando Regional REALTOR® Association. “When you take this, and couple it with the lowest interest rate we’ve seen all year, this certainly makes it a great time for buyers to enter the market. For sellers, they must be pricing their home reasonably to avoid it sitting on the market and having to lower the listing price.”
Market Shift
This month marks a noticeable shift in the market. For most of 2025, prices and sales activity held steady, but August showed clear signs of cooling. Median home prices slipped 1.8% from July, sales dropped nearly 10%, and homes are sitting longer — an average of 75 days on market. Combined with interest rates dipping to the lowest point this year (6.4%), buyers are gaining more leverage while sellers are needing to adjust expectations and pricing strategies.
Key Highlights from August 2025:
- Median Home Price: $382,950 — down 1.8% from July ($389,999)
- Closed Sales: 2,306 — a 9.6% drop from July’s 2,551
- Inventory: 13,306 homes — down 1.9% from July’s 13,557
- Interest Rates: 6.4% — the lowest level so far in 2025
- New Listings: 3,353 — down 11.5% from July
- Distressed Homes: 29 (1.3% of sales) — up 52.8% from July
What This Means:
- For Buyers: Lower interest rates and more days on market create opportunities to negotiate
- For Sellers: Pricing competitively is key to avoiding extended time on market or future price reductions.