Central Florida Housing Market: Prices Rise Despite Inventory Surge

Palm Bay, Florida, USA - As of June 24, 2025, Central Florida is navigating a complex housing market landscape, quite unlike anything it has seen in the past 15 years. The region boasts its largest inventory of homes for sale since 2011, yet prices are surprisingly on the rise. According to Central Florida Public, this scenario challenges the traditional principles of supply and demand, particularly in the Orlando area. Here, despite a housing inventory surge, median home prices are sitting around $380,000 to $390,000 and are expected to cross the $400,000 mark soon.

This flourishing environment has its nuances; year-over-year home sales are down by approximately 12%, while monthly sales have ticked up by nearly 4%. The situation is quite telling. Lawrence Bellido, president of the Orlando Regional Realtor Association, describes the market as balanced, offering a variety of options for homebuyers. Interestingly, he notes that some homes continue to sell for higher appraised values despite the rising inventory levels. All this points to a shift away from the frenetic buying environment spurred by COVID-19, signaling a more stable housing market with potential corrections on the horizon.

Statewide Trends Point to Special Circumstances

Looking at the housing market on a broader scale, Florida Realtors reports that Florida’s housing market is showing signs of equilibrium, benefiting both buyers and sellers alike. May data reveal that closed sales of existing single-family homes fell slightly, down 5.7% year-over-year, with a statewide median sales price dipping to $415,000, reflecting a 2.7% decline compared to the previous year. Interestingly, this marks the third consecutive month of price declines for single-family homes, although prices remain significantly higher than levels seen in 2020.

Moreover, the number of homes sold in May decreased by 13.7% compared to last year, while active listings have jumped by 28.8%. There are now about 227,774 homes for sale statewide, with an average months’ supply of five months for single-family homes. This uptick in available properties indicates the market is adjusting itself towards a more balanced state, although the downward trend in prices for condos and townhouses continues to draw concern.

Emerging Opportunities for Buyers

As Central Florida experiences a significant shift in its housing dynamics, opportunities abound for first-time homebuyers. According to Bellido, buyers looking to navigate this new landscape can benefit from exploring various local, state, and federal grant programs available for discounts. Consulting with experienced realtors is highly recommended as they can provide valuable insights into the market’s idiosyncrasies.

As more individuals explore moving inland to find affordable housing options, the competitiveness of certain areas intensifies. Some regions, including West New Haven in East Polk County and the Deltona-Daytona Beach-Ormond Beach market in Volusia, are experiencing notable downturns. Meanwhile, other neighborhoods, particularly in South Florida, display compelling gains, as evidenced by a report from Redfin, which highlights top locales like Coral Gables and Lauderhill, where sales prices are soaring.

In the face of fluctuating trends, potential homebuyers might be mulling over a crucial question: Is now the right time to jump into the housing market? As this unique situation unfolds in Florida, it’s a moment ripe with possibilities, and those who stay informed will have a good hand when it comes to making moves in this evolving landscape.