Home Prices Dip as Buyer Activity Upticks on Lower Mortgage Rates
Orlando’s housing market displayed mixed signals in September 2025, reflecting both a modest cooling in prices and a slight uptick in buyer activity. According to the Orlando Regional Realtor Association, the median home price fell for the third consecutive month, reaching $378,000 — a 1.3% decline from August’s $382,950. Despite the retreat in prices, market activity is showing signs of balance, fueled in part by a drop in mortgage rates.
Interest rates for September 2025 averaged 6.1%, down from 6.4% in August and the lowest level since September 2024. “Falling interest rates are beginning to inject some welcomed energy into the market,” said Lawrence Bellido, president of the Orlando Regional Realtor Association. “At the same time, a slight dip in prices and days on market suggests the market is finding balance. We’re not seeing the frenzy of a few years ago, but we’re seeing movement — a healthy pace that benefits both buyers and sellers. These trends could set the stage for an active fall market in Central Florida.”
While overall home sales slipped 2.6% month-over-month, from 2,306 in August to 2,245 in September, pending sales increased by 3%, signaling renewed buyer interest. Homes sold more quickly as well, with the average property spending 72 days on the market, down from 75 days in August.
The supply side of the market showed a mixed picture. Inventory fell for the fourth consecutive month, decreasing 2.2% to 13,007 homes. Yet the overall supply of homes — measured in months — rose slightly to 5.79 months, edging closer to the six-month threshold considered a balanced market. New listings in September increased marginally to 3,371, up 0.5% from August’s 3,353 homes.
Breaking down sales by property type, single-family homes continued to dominate, with 1,793 transactions in September, a slight dip from 1,808 in August. The median price for single-family homes remained robust at $406,000, roughly in line with September 2024. Condominiums and townhouses showed steeper declines: condo sales fell 12.4% to 247 units, while townhouses and villas dropped 5.1% to 205 units. Distressed properties accounted for just 28 sales, or 1.2% of the market, reflecting a continuing low share of foreclosures and short sales.
Overall, the Central Florida market appears to be settling into a steadier rhythm. Falling interest rates are giving buyers more confidence, while modest price adjustments and faster sales suggest the market is inching toward equilibrium — an encouraging sign for both prospective homeowners and sellers heading into the fall season.
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