As 2025 comes to a close, the real estate landscape—nationally and here in Orlando—is shifting toward a more balanced, buyer-friendly environment. Lower mortgage rates, increasing inventory, and a cooling pace of price appreciation are creating opportunities that many buyers haven’t seen in years. For sellers, the market still remains healthy, but with greater emphasis on strategic pricing and strong marketing.
Here’s a breakdown of the trends shaping today’s market and what Central Florida homeowners, buyers, and investors should know heading into 2026.
Mortgage Rates Are Easing
Mortgage rates have steadily improved through the end of 2025.
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30-year fixed rates are now averaging in the low-to-mid 6% range, hovering around 6.19% in early December.
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While the Federal Reserve has enacted multiple short-term rate cuts this year, mortgage rates are more closely tied to long-term Treasury yields—meaning improvement has been gradual but steady.
For buyers, this translates into slightly more purchasing power compared to the peak rates we saw in 2024.
Inventory Is Growing, Giving Buyers More Options
One of the biggest stories of 2025 has been the increase in active listings nationwide.
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Inventory levels are climbing back toward pre-pandemic norms.
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Homes are spending longer on the market (median of 64 days in November).
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More listings are returning with price reductions—a sign of a market leveling out after years of aggressive competition.
In Central Florida, we’re seeing:
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More move-up sellers listing their homes
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Increased new-construction availability
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Greater buyer flexibility and negotiation power
For the first time in years, buyers can take a breath, compare options, and make thoughtful decisions.
Prices Are Stabilizing
After several years of rapid appreciation, home prices in much of the country—including Florida—are finding a healthier pace.
Across the U.S.:
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Some metro areas are experiencing slight year-over-year declines (Austin, Atlanta, San Diego).
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Others, such as New York and Chicago, are still seeing modest increases.
Locally in the Orlando area, the trend is mixed depending on neighborhood and price point.
Highly desirable communities continue to perform well, but bidding wars have cooled, and pricing strategy matters more than ever.
Affordability Is Slowly Improving
While affordability remains a challenge, the combination of:
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easing mortgage rates
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stabilizing home prices
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steady wage growth
…is creating a more manageable environment for buyers. Forecasters expect the average mortgage payment-to-income ratio to fall below 30% in 2026—something we haven’t seen since 2022.
This improvement may encourage more first-time buyers and sidelined renters to re-enter the market.
Local Orlando Snapshot
Central Florida continues to be one of the most dynamic real estate markets in the country. Trends we’re seeing include:
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Balanced conditions in many neighborhoods
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A rise in price reductions, especially on homes that were initially over-priced
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Strong demand in family-friendly suburbs, including Winter Park, Winter Springs, and Lake Mary
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Steady interest from out-of-state buyers relocating for work, lifestyle, and Florida’s tax advantages
Orlando’s diverse economy—tourism, tech, healthcare, aerospace—helps keep our housing market resilient even when other metros soften.
Looking Ahead to 2026
Industry experts expect 2026 to be a transition year toward a more normal, stable market. After several years of rapid swings, the coming year is likely to bring:
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Continued improvement in affordability
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More balanced conditions between buyers and sellers
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Increased inventory, especially from new construction
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A gradual rise in overall sales activity
For buyers, 2026 may offer some of the best opportunities we’ve seen recently.
For sellers, the market remains strong—but success will depend on pricing accurately and partnering with an experienced real estate professional who can position your home strategically.
Your Central Florida Real Estate Experts
At REMAX 200 Realty, REMAX Town & Country Realty, and REMAX Central Realty, our teams are committed to helping buyers and sellers navigate today’s evolving market with clarity and confidence. Whether you’re planning a move in 2026 or simply exploring your options, our experienced agents are here to guide you every step of the way.
With deep roots in the Orlando community and a proven track record of results across Winter Park, Winter Springs, Lake Mary, and beyond, we’re proud to be your trusted local real estate resource.
Thinking about buying or selling in the new year?
Reach out to any of our offices—we’re always here and ready to help.
REMAX 200 Realty – Winter Park
REMAX Town & Country Realty – Winter Springs
REMAX Central Realty – Lake Mary
Your home. Your goals. Our commitment.