The latest shift in Florida’s real estate market may signal the best news for home buyers in years. Here’s what’s happening.
Good news if you’re thinking about moving to Florida or buying a new home in the Sunshine State. In a market that has long been defined by rapid sales and competitive bidding, Central Florida is now experiencing an unprecedented shift. The region’s housing inventory has spiked to levels not seen since 2015, with more than 11,000 homes available as of January 2025, according to data from the Orlando Regional REALTOR® Association. This, along with a potential reduction in property taxes may be about to heat up the market for both buyers and sellers. This surge is prompting real estate professionals to rethink their strategies for both selling and purchasing homes.
A Changing Tide in Central Florida
For years, Central Florida’s real estate market was characterized by a seller’s advantage where properties would often receive multiple offers within days of being listed. However, recent statistics reveal a marked change. With inventory levels soaring, homes now linger on the market for longer periods—averaging over 70 days before going under contract, with an additional 30 days required to finalize closings. This extended timeline is reshaping expectations on both ends of the transaction.
Andrey Bustamante, President and CEO of Bustamante Real Estate, told Orlando’s WFTV what the shift in market dynamics means for Central Florida. “Honestly, I think this is the absolute best time in real estate,” Bustamante said, noting the palpable excitement among buyers and sellers now that the election season is behind us. His sentiment reflects a broader optimism in the market despite the challenges that come with increased inventory.
Market Data: Stabilizing Prices and Extended Sales Periods
One of the most noteworthy aspects of this new market trend is the stabilization of home prices. Recent reports indicate that the median sales price for homes in Central Florida has settled at approximately $375,000. This represents a slight dip from December’s median price of $380,000, signaling a potential cooling after years of rapid price escalation. This small decrease offers buyers some relief and a chance to enter a market that, until recently, often pushed budgets to their limits.
The extended time on the market further underlines the transition from a seller’s market to one that increasingly favors buyers. With inventory now exceeding a seven-month supply—a benchmark typically used to define a buyer’s market—prospective homeowners have a broader selection of properties to consider. This shift is encouraging for buyers who have been priced out of competitive bidding wars in previous years.
Realtor Advice: Preparation and Strategic Planning
In light of these developments, real estate professionals are advising both sellers and buyers to adopt a more strategic approach. For sellers, the message is clear: presentation is paramount. “When it comes to sellers, my biggest feedback is, you know, there’s the beauty contest and a price war,” explained Bustamante. He emphasized that sellers must invest in staging, fresh paint, and any necessary repairs to ensure their homes are move-in ready. Such preparation not only makes the properties more appealing but also helps to set them apart in an increasingly crowded market.
For buyers, the expanded inventory is a double-edged sword. On the one hand, the larger selection provides more options and a better negotiating position. On the other hand, certain desirable price points continue to see limited availability, which means that prompt action is still crucial. “This is the time that people have been waiting for,” Bustamante said. “You don’t have to bid $100,000 or $200,000 over asking price anymore.” He advises buyers to work closely with trusted real estate professionals who can help them navigate the complexities of the market, craft competitive offers, and ultimately secure their desired properties without overpaying.
Contributing Factors: Weather and Outmigration
Several factors have contributed to the current surge in housing inventory. Recent back-to-back storms during the fall disrupted sales, leaving a larger number of properties unsold as homeowners delayed listing their homes in the wake of the weather disturbances. Additionally, data from the Florida Chamber of Commerce highlights that a higher-than-normal number of residents have chosen to leave the state in recent months. This exodus has, somewhat paradoxically, increased the number of homes on the market, as departing homeowners seek to liquidate their properties.
Pending sales also saw a notable uptick during this period. From December to January, the number of pending transactions rose by an impressive 24.8%, climbing from 2,661 to 3,320 homes. This increase is indicative of a resilient underlying demand, even as the overall inventory grows. It suggests that while buyers now have more choices, the desire to own a home in Central Florida remains strong, bolstered by stabilizing prices and the promise of a less frenzied market.
Looking Ahead: Opportunities for Both Buyers and Sellers
The current real estate environment in Central Florida offers a unique set of opportunities and challenges. For sellers, the market is evolving from a scenario where rapid sales were the norm to one where careful preparation and realistic pricing are now the keys to success. Sellers who invest in home improvements and strategic marketing may find that their properties still attract competitive offers, even if the days of bidding wars have diminished.
For buyers, the surge in inventory represents a welcome shift. With more properties available and median prices stabilizing, buyers can take a more measured approach to their home search. “It’s a great time to shop around,” said Bustamante, emphasizing the importance of having a trusted real estate advisor to help identify opportunities that may not be immediately apparent in a rapidly shifting market.
Experts caution, however, that while the overall market may appear more balanced, local fluctuations in inventory and demand can still lead to competitive situations in certain neighborhoods. Buyers are advised to monitor market trends closely and to be prepared to act quickly when the right property becomes available.
Expert Perspectives and Future Trends
Real estate analysts are closely monitoring these developments as an early indicator of broader trends in the Florida housing market. The interplay of weather-related disruptions, economic factors, and demographic shifts is creating a dynamic environment where adaptability is essential. Realtors like Bustamante are optimistic that the current phase will pave the way for a more sustainable market, where both buyers and sellers can engage in transactions that reflect the true value of the properties.
Moreover, with technology playing an increasingly important role in real estate, both buyers and sellers have access to more data and tools than ever before. Online listings, virtual tours, and real-time market analytics are helping market participants make informed decisions in a rapidly changing landscape.
As the market continues to adjust to these changes, both buyers and sellers remain hopeful that the balance between supply and demand will eventually lead to a more predictable and equitable real estate environment. For now, Central Florida stands at a crossroads, offering a diverse array of options for those ready to embrace the evolving opportunities in the housing market.
