. Central Florida Market Update
Happy New Year and Welcome to 2025!
As we enter the new year, here’s a quick glance at the current market for Central Florida.
As of February 2025, the Central Florida real estate market is experiencing notable shifts influenced by various economic factors, demographic trends, and regional developments.
Home Prices and Inventory
In 2024, the Orlando Metro area saw a median home price of $380,000, marking a nearly 4% increase from the previous year. However, the market is showing signs of cooling, with a six-month supply of homes—the first in 14 years—indicating a more balanced market between buyers and sellers. (Source: cfpublic.org)
Statewide, Florida’s housing inventory increased by 40.1% in mid-2024, providing buyers with more options than in previous years. This trend is expected to continue into 2025, potentially leading to a gradual decrease in home prices, especially in areas with rising inventory. (Source: floridarealtymarketplace.com)
Market Dynamics
The Central Florida market is transitioning from a seller’s to a buyer’s market, with more homes available and longer days on the market. This shift is attributed to increased inventory and a cooling demand, suggesting a more balanced market in 2025.
Regional Variations
While some areas in Florida, such as Miami, are expected to continue thriving, cities like Tampa, St. Petersburg, Sarasota, Punta Gorda, and Naples may experience price declines due to increased inventory and reduced demand. (Source: newsweek.com )
Economic Influences
The Federal Reserve’s recent interest rate cuts are anticipated to impact the Florida real estate market by making mortgages more affordable, potentially stimulating buyer activity. However, affordability remains a concern, with rising home prices and potential increases in mortgage rates posing challenges for first-time buyers and middle-income families. (Source: thetresgroup.com )
The Central Florida real estate market in early 2025 is characterized by increased inventory, a shift towards a more balanced market, and regional variations in home prices. Prospective buyers and sellers should stay informed about local market conditions and broader economic factors to make well-informed decisions. If understanding how this affects your current situation or should you have questions on whether to sell or buy, please feel free to reach out to us.
