Lower Mortgage Rates, Slower Inventory Growth – What It Means for Central Florida Buyers & Sellers

In the national housing market, we’re starting to see a shift — and it’s a good reminder that real estate trends don’t happen in a vacuum. Mortgage rates have dipped to their lowest levels of the year, currently hovering around 6.57%, but instead of a big rush of new homes hitting the market, the pace of inventory growth has slowed compared to earlier in the year.

According to HousingWire, several factors are at play: A combination of lower mortgage rates, the normal seasonal slowdown in new listings, and some frustrated sellers pulling their homes after not getting the price they wanted.

While total active listings often peak in October or November, the speed of growth has moderated. Unless rates climb again, the biggest wave of inventory growth for 2025 may already be behind us.

What’s Happening in Central Florida

Here in Central Florida, similar dynamics are shaping the market — especially in high-demand areas like 32803. This ZIP code covers neighborhoods including Audubon Park Garden District, Colonialtown North, Lake Eola Heights, Thornton Park, and parts of downtown Orlando. Known for its historic charm, walkable streets, unique dining and boutique shopping, and proximity to the business core, it’s one of the most vibrant parts of the city.

Current 32803 numbers:

• Median List Price: $549,900

• Average Days on Market: 96

• Price Reductions: 50.7% of listings

The longer days on market and high rate of price adjustments show that while demand is steady, buyers have leverage — especially if sellers start high and need to adjust.

Opportunities for Buyers

With rates dipping and over half of 32803 listings seeing price reductions, buyers have negotiating room. If rates continue toward 6% or lower, competition may rise, making now a potentially strategic time to act before the market heats up again.

Considerations for Sellers

For sellers in 32803 and similar neighborhoods, pricing strategy is critical. Well-priced homes in good condition are still attracting strong attention, but overpricing can lead to longer market times and eventual reductions. The right marketing, presentation, and initial price point can make all the difference.

Bottom Line:

Lower mortgage rates are creating a more dynamic market heading into fall, and Central Florida is no exception. In sought-after areas like 32803, motivated sellers, longer days on market, and increased price adjustments are opening the door for strategic buyers. At the same time, sellers who position their homes correctly from the start can still capture strong interest. Whether buying or selling, now is the time to have a clear game plan — because if rates move closer to 6%, competition could heat up quickly.

Source: HousingWire, Orlando Regional Realtor Association data