Orlando Housing Market: Stability Amidst Shifting Dynamics

Orlando Housing Market: Stability Amidst Shifting Dynamics

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The Orlando, FL metro area housing market in February 2025 presents a complex landscape characterized by stability in some areas and notable shifts in others. The Median Sales Price remains unchanged year-over-year at $400,000, indicating a stabilization in home values. However, the Median List Price has seen a slight decline of 0.5% YoY, now standing at $409,000, suggesting a slight softening in seller expectations.

Price Per Square Foot metrics reveal a nuanced picture. The median Price Per Square Foot has decreased by 0.7% YoY to $223.47, while the Median List Price per square foot has experienced a marginal increase of 0.2% YoY, reaching $234.60. This indicates a potential divergence between buyer and seller perceptions of property value.

Sales activity has experienced a downturn, with Homes Sold decreasing by 13.6% YoY to 2,692 units. Pending Sales have also declined by 14.8% YoY, totaling 3,728. Despite this, New Listings have seen a slight increase of 0.6% YoY, amounting to 4,612, which may suggest a growing inventory as sellers enter the market.

Inventory levels have surged by 28.8% YoY, reaching 13,501 homes, contributing to a significant increase in the Months of Supply, now at 5.0 months, up 160% YoY. This rise in inventory and supply indicates a shift towards a more balanced market, potentially offering more options for buyers.

The Median Days on Market have increased by 18% YoY to 64 days, reflecting a slower pace of sales. The average sale to list ratio has slightly decreased by 0.6% YoY to 97.1%, and the sold above list ratio has dropped by 1.6% YoY to 11.1%, suggesting a cooling in competitive bidding scenarios.

Price Drops have become more prevalent, rising by 3.8% YoY to 33.2%, indicating that sellers are adjusting their expectations in response to market conditions. Additionally, the percentage of homes going off market in two weeks has decreased by 6.2% YoY to 25.5%, further highlighting the extended time properties are spending on the market.

Overall, the Orlando housing market in February 2025 reflects a period of adjustment, with stable Median Sales Prices amidst increased inventory and extended market times. Buyers may find more opportunities as the market shifts towards equilibrium, while sellers may need to recalibrate pricing strategies to align with current market dynamics.