Orlando Housing Market Update: July 2025

The Orlando housing market continued to show mixed signals in July 2025, with some indicators pointing to stability and others reminding us how dependent today’s real estate environment is on mortgage interest rates.

Interest Rates Take Center Stage

The most significant news this month is that mortgage rates dipped to 6.46% in July, down from 6.68% in June. This marks the lowest level of 2025 so far.

Why does this matter? Because interest rates remain the single biggest driver of buyer activity. In earlier blogs, I’ve pointed to HousingWire research showing that whenever rates move closer to 6%, demand begins to accelerate. We’re seeing that pattern again—lower borrowing costs are helping hesitant buyers re-enter the market, and sellers should take note that affordability shifts quickly when rates move even a fraction lower.

Prices Holding Steady

• The median home price held nearly flat at $389,999, essentially unchanged from May and June.

• The average price came in at $479,697, down 3% from June but up 2.1% year-over-year.

This consistency in pricing, despite softer contract activity, suggests sellers are still holding firm while buyers are being more selective.

Inventory and Sales Activity

• Inventory: 13,557 homes were available in July, down slightly from June but still 21.5% higher than a year ago.

• Closed sales: 2,551 for the month, a modest 1.5% increase over June but down 3.8% compared to July 2024.

• New contracts: 2,316 in July, down 13.5% year-over-year. This is where the impact of affordability pressures really shows up.

While more homes are available compared to last year, the pace of contracts and closings is still lagging behind. Buyers have more choices, but they remain cautious and budget-conscious.

What Buyers and Sellers Should Watch

• Buyers: If rates continue to trend lower, affordability improves and competition may increase heading into fall. Acting sooner could help buyers get ahead of a demand uptick.

• Sellers: While inventory has grown, buyers are sensitive to rates. Proper pricing and presentation remain critical. As I’ve written before, overpricing in today’s market only results in longer days on market and price reductions down the road.

Bottom Line

The July numbers confirm what we’ve been saying all year: the Orlando housing market is driven by interest rates. Inventory is higher, prices are steady, but true momentum will come if and when rates push closer to 6%. That’s when we can expect more contracts, quicker sales, and stronger demand across Central Florida.

Source: Orlando Regional Realtor Association, July 2025 State of the Market Report. Supplemental data and analysis referenced from HousingWire reporting on mortgage rate trends.