The number of homes for sale in Orlando keeps going up, but buyers aren’t showing much interest. Home prices are still high, and mortgage rates remain expensive. As a result, many homes are sitting on the market without offers. Some experts are warning that Orlando could be heading for a housing downturn similar to 2008.
Orlando’s Boom Might Be Turning Into a Bust
During the pandemic, many people moved to Florida for the sunshine, cheaper living, and lower taxes. That caused a housing boom in places like Orlando. But now that many new homes have been built and mortgage rates have stayed high, sellers are trying to sell, but buyers can’t afford the prices.
Inventory Is Up, But Sales Are Down
Right now, over 13,000 homes are for sale in Orlando, which is much higher than normal. In February 2025, inventory was up nearly 45% compared to the year before. But sales fell 15.5% from February 2024. Even though prices dropped slightly from the previous month, they’re still higher than last year.
More sellers are cutting prices to attract buyers. In February, nearly 31% of homes sold had price reductions.
Buyers Gaining Power as More Homes Hit the Market
As more homes become available, buyers have more options and more power to negotiate. For example, the price of single-family homes dropped to $410,000 in March. Condo prices also fell by nearly 6% to $268,500. But even with these drops, many people still can’t afford to buy, with mortgage payments now eating up 39% of the average local income—way above the normal 27%.
On top of that, homeowners are also dealing with higher insurance, taxes, and HOA fees, making it even harder to keep up.
What to Expect Next
Some experts think home prices in Orlando could fall another 6% in the next year. One analyst said prices are about 18% too high compared to what’s normal. So if inventory keeps rising and demand stays low, prices might keep dropping over time. Still, Orlando could stay attractive to people moving out of more expensive cities like Miami. But for now, it looks like the city’s real estate market is cooling off fast.
