Orlando’s housing market is cooled, and sellers face a new reality: less money for their homes
In Orlando, there is a risk that 10% of all listings will sell because they are less than the homeowners bought them. This is almost three times the 3.5% share last year, the seventh highest among the top 50 metros. Nationwide, there is a risk that 6% of sellers will lose money on sales.
However, shares vary widely depending on when someone bought their home, and those who buy these days tend to be at greater risk.
32% of post-pandemic sellers risk losing money on sales. This is the third highest share in the country. Nationwide sharing is 16%. 10% of sellers who purchase during the pandemic risk losing money on sales. Nationwide, this share is 9%. 1% of sellers who purchased before the pandemic risk losing money on sales of less than 2% at risk nationwide.
Orlando reflects the wider sun belt trends. That is, the decline in pandemic boom, buy-friendly situations, and sellers struggling to attract offers. But unlike places like Austin, prices in Orlando have continued to rise since the pandemic, pushing buyers even further on the sidelines.
As a result, Orlando home sellers may not be able to make a big profit from their home. Instead, many face the risk of selling less than they bought.
That’s not to say that Orlando home sellers actually lose and sell. Sellers facing financial losses usually pay the asking price and wait until they find a buyer willing to return home from the market or rent. Moreover, the majority of sellers still make money from home sales. Nationwide, 94% of homes are on sale than they buy, compared to just 37% in 2012.
How has the housing market changed since the pandemic?
Orlando’s housing market was red hot during the pandemic. Home buyers have taken advantage of historically low mortgage fees to quickly photograph available homes and emit limited supply of the city. As a result, prices rose 57% to $393,000 between 2020 and 2022. They continued to climb, reaching $420,000 in May 2025.
Prices have risen significantly, and the Orlando housing market has begun to cool down and buyers have begun to retreat. Climate risks and rising insurance costs are also putting pressure on them. Today’s sellers are struggling to attract buyers, resulting in lower sales and increasing sellers’ share, making their homes listed.
A drop in prices creates a bigger gap
If prices fall by the end of the year to match Redfin’s forecasts, more sellers will be more susceptible to losing money at home. Even the most affected metros will see a significant increase in New Brunswick, New Jersey, Providence, and RI.
If prices drop at the predicted 1%, 11% of Orlando’s list is at risk. A 3% drop in price puts 14% at risk. A 5% drop in price puts 16% at risk.
Those who bought before the pandemic face the lowest risk of losing and selling, but the lower mortgage rates make them less likely to move in the first place.
How buyers and sellers navigate the Orlando market
The Orlando housing market has changed dramatically since the pandemic, creating more opportunities for buyers and putting pressure on sellers.
Buyers: Market buyers are generally commanders in Orlando, as housing costs become higher and there are more homes in the market. They should negotiate when the right home comes and be prepared to move quickly. Sellers: Sellers generally don’t have the bargaining power they had during the pandemic, and may need to provide incentives that will bravely fascinate today’s market.
Complete Metro-level data
Methodology
The largest US Metros of the 50 largest are based on a Redfin report that analyzed the active list of MLS in May. All housing data is from Redfin.
The report identifies the share of sellers who are actually losing their homes and selling them, not the share of sellers who are at risk of losing their homes and selling them, and does not take into account the costs of closing. The pandemic was defined as the highest rise in home prices between July 2020 and July 2022. For more information, see the methodology in the original report.
