Real Estate Market in Orlando vs. St. Pete
When looking to invest in Florida real estate, two cities often come up in the conversation: Orlando and St. Petersburg. Both markets have distinct advantages and challenges, making it essential for buyers, sellers, and investors to understand the key differences before making a decision.
Orlando and St. Petersburg are two of Florida’s most dynamic real estate markets, each offering unique benefits to homebuyers. One of Orlando’s biggest draws is its world-famous theme parks, including Walt Disney World and Universal Studios. Living in Orlando means having easy access to these major attractions, as well as a growing job market and a vibrant downtown scene. On the other hand, St. Pete boasts beautiful Gulf Coast beaches, a thriving arts community, and a more laid-back coastal lifestyle. Both cities are currently experiencing buyer’s market conditions, creating prime opportunities for those looking to purchase property.
Orlando Real Estate Market Overview
Orlando has long been known as a global tourist destination, thanks to its world-famous theme parks and entertainment industry. But beyond the attractions, Orlando’s real estate market has experienced consistent growth.
Housing Prices and Market Conditions
The median home price in Orlando in early 2025 sits at $375,000, reflecting a 1.3% decrease from the previous year. While Orlando has seen steady growth over the past few years, rising inventory levels suggest a cooling market. With 11,604 active listings as of late 2024, the city has the highest inventory since 2019, giving buyers more options.
Aaron Hunt, Broker of Avalon Group Realty, notes, “Orlando’s real estate market is dynamic, but with increasing inventory and moderate price corrections, buyers have more negotiation power than they did a year ago.”
Buyer vs. Seller Market
Orlando is currently shifting toward a buyer’s market, meaning homes are staying on the market longer, and price growth is stabilizing. In November 2024, closed sales dipped by 9.6% compared to the previous year, reflecting a slowdown in demand.
Orlando’s 32806 Real Estate Market: A Closer Look
The 32806 zip code in Orlando is a unique and sought-after area, known for its mix of historic charm, established neighborhoods, and convenient access to downtown Orlando. Over the past year, the real estate market in 32806 has seen noticeable shifts, making it an appealing option for buyers looking for both primary residences and investment properties.
Housing Prices and Trends
As of January 2025, the median home price in 32806 is $461,428, reflecting a 7% increase from the previous year. This increase in price demonstrates steady demand in the area despite broader market shifts. However, while prices have risen, the overall market in 32806 is considered a buyer’s market, meaning that homes are staying on the market longer and buyers have more negotiating power.
Breakdown of Price Changes by Home Size:
- 1-bedroom homes: Prices have dropped by 4.1%, making them an affordable option for first-time buyers or investors.
- 2-bedroom homes: Prices have risen by 7.1%, reflecting a growing demand for smaller, more affordable homes.
- 3-bedroom homes: Prices increased by 8.3%, making them one of the strongest-performing segments.
- 4-bedroom homes: A more modest increase of 1.6% suggests a more stable market for larger homes.
- 5-bedroom homes: Prices have slightly declined by 1.4%, indicating that luxury buyers may have more leverage in negotiations.
Housing Inventory and Market Conditions
The total number of homes for sale in 32806 increased by 2.7% from December 2024 to January 2025. This slight rise in inventory means that buyers have more options than they did a year ago. However, sales activity has slowed significantly, with a 42.3% decline in the number of homes sold in January compared to December. This slowdown contributes to the buyer’s market conditions, as sellers may be more willing to negotiate on price and terms to secure a sale.
Homes for Sale by Bedroom Type:
- 1-bedroom homes: Inventory decreased by 25%, making them slightly harder to find.
- 2-bedroom homes: Inventory increased by 21.4%, offering more selection.
- 3-bedroom homes: A slight increase of 1.4% suggests stable demand.
- 4-bedroom homes: No change, indicating a steady supply.
- 5-bedroom homes: Inventory rose by 9.1%, providing more opportunities for buyers seeking larger properties.
Pricing Strategy and Negotiation Trends
For buyers looking to purchase in 32806, the data suggests that there are opportunities for negotiating below asking price. In January 2025:
- 60% of homes sold below the asking price
- 20% sold at asking price
- 20% sold above asking price
This means that the majority of buyers in this market can expect some level of price flexibility from sellers, particularly as homes stay on the market longer.
Days on Market and Selling Time
Another factor contributing to the buyer’s market designation in 32806 is the increase in the average days on market. Homes in this area now take an average of 66 days to sell, a 36% increase from the previous year. A breakdown of selling times shows that:
- 47% of homes sell within 30 days
- 13% take between 30-90 days
- 40% take over 90 days to sell
This extended selling time means that sellers may become more motivated to negotiate, making it an opportune time for buyers to enter the market.
Why 32806 is a Buyer’s Market
The combination of rising inventory, increased selling time, and the majority of homes selling below asking price makes 32806 a true buyer’s market. Unlike hot seller’s markets where buyers have to act fast and compete aggressively, buyers in 32806 can take their time to evaluate options, negotiate better deals, and find homes that truly meet their needs.
If you’re considering purchasing in Orlando’s 32806 zip code, now may be an ideal time to explore your options before the market shifts again.
St. Petersburg Real Estate Market Overview
St. Petersburg, or “St. Pete” as locals call it, offers a completely different real estate landscape. Known for its stunning waterfront properties, historic neighborhoods, and vibrant arts scene, St. Pete has become an attractive option for both full-time residents and investors.
Housing Prices and Market Conditions
As of January 2025, the median home price in St. Petersburg is $431,000, showing only a 0.2% increase from the previous year. However, the price per square foot is $338, which is significantly higher than Orlando’s $289 per square foot. This indicates that while Orlando may offer larger homes for the price, St. Pete properties hold strong value due to their location and demand.
Yvette Kim, a Realtor with Avalon Group, explains, “St. Pete’s real estate market remains strong because of the city’s coastal appeal and limited land for new development. Unlike Orlando, where builders can expand outward, St. Pete has a fixed supply, keeping home values stable.”
Buyer vs. Seller Market
Like Orlando, St. Pete has transitioned into a buyer’s market, but demand remains high for well-priced homes. With a 10.9% increase in available homes for sale, buyers have more options, yet desirable properties still sell quickly.
Why Orlando and St. Pete are Buyer’s Markets
Both Orlando and St. Pete have recently become buyer’s markets, but the reasons behind this shift differ between the two cities.
Orlando: High Inventory and Market Saturation
- Increased Supply: The number of homes for sale in Orlando has grown significantly over the past year. With over 11,000 active listings, buyers have more choices and negotiating power.
- Declining Demand: Higher mortgage rates and economic uncertainty have caused a slowdown in buyer activity. Homes are sitting on the market longer, giving buyers more leverage to negotiate prices and terms.
- Price Adjustments: Due to the high competition among sellers, many have been forced to lower their asking prices or offer incentives such as closing cost assistance.
St. Pete: Rising Inventory but Strong Demand
- Limited Land Availability: While inventory is rising, St. Pete does not have the same expansion potential as Orlando, keeping home values relatively stable.
- Desirable Location: The coastal appeal, walkable neighborhoods, and waterfront properties continue to attract buyers, even in a slower market.
- Luxury and Investment Properties: Unlike Orlando’s focus on short-term rentals, St. Pete’s luxury and long-term investment properties maintain strong value, making it a smart buy for those looking for stability.
Lifestyle and Investment Potential
Beyond the numbers, choosing between the Real Estate Market in Orlando vs. St. Pete often comes down to lifestyle and investment goals.
Orlando: A Hub for Short-Term Rentals and Growing Suburbs
- Tourism Industry: Orlando’s short-term rental market is booming, making it ideal for investors looking at vacation rentals.
- New Developments: The city’s ability to expand means buyers can find new construction homes at competitive prices.
- Suburban Growth: With plenty of master-planned communities, Orlando is great for families seeking larger homes and modern amenities.
St. Pete: Coastal Living and Historic Charm
- Waterfront Properties: St. Pete offers stunning waterfront and beachside homes, attracting retirees and luxury buyers.
- Walkability: Many neighborhoods, like Downtown St. Pete and Old Northeast, offer a pedestrian-friendly lifestyle.
- Limited Inventory: With less space for new development, home values are expected to remain stable, making St. Pete a solid long-term investment.
Pam Amante, a Realtor with Avalon Group, emphasizes, “The St. Petersburg real estate market continues to attract buyers who want a mix of historic charm, arts culture, and proximity to the Gulf of Mexico. You won’t find that combination in Orlando.”
Market Trends and Future Outlook
Orlando: What to Expect in 2025
- Home prices may stabilize or decrease slightly as more homes hit the market.
- Builders are focusing on smaller, more affordable homes to meet demand.
- Mortgage rates are expected to decline, which could boost buyer activity.
St. Pete: What to Expect in 2025
- Home prices should remain steady due to high demand and limited supply.
- Interest in coastal and downtown properties will continue to drive competition.
- Cash buyers and investors will remain active, keeping the market competitive.
Nora Sturgill, Realtor with Avalon Group, shares, “Buyers are drawn to St. Pete because they know waterfront property will always be in demand. Even in a shifting market, location is king.”
The Verdict: Real Estate Market in Orlando vs. St. Pete
Both cities present unique opportunities, but deciding between the Real Estate Market in Orlando vs. St. Pete depends on personal preferences and financial goals:
- If you’re looking for affordable new construction and rental investment opportunities, Orlando might be your best bet.
- If you prioritize coastal living, historic charm, and long-term value stability, St. Pete is the way to go.
For expert guidance in navigating the St. Petersburg Real Estate Market, contact Avalon Group Realty today!
FAQ: Real Estate Market in Orlando vs St Pete
1. Which market is better for first-time homebuyers?
- Orlando offers lower-priced homes, but St. Pete provides more long-term stability.
2. Where are homes selling faster?
- St. Pete homes sell in an average of 56 days, while Orlando homes take 66 days.
3. Is now a good time to buy in Orlando or St. Pete?
- Both markets favor buyers, but St. Pete offers better long-term value.
4. What are the best investment opportunities?
- St. Pete for long-term rentals, Orlando for short-term rentals.
5. Which city has better lifestyle amenities?
- St. Pete offers a vibrant coastal lifestyle, while Orlando is family-friendly with world-class attractions.
Conclusion
If you’re deciding between the Real Estate Market in Orlando vs St Pete, your choice should be based on financial goals and lifestyle preferences. With a thriving community and strong market fundamentals, St. Petersburg continues to be a top choice for homebuyers and investors alike.
Contact Avalon Group Realty
For expert real estate guidance, reach out to Avalon Group Realty.
Website: www.AvalonGroupTampaBay.com
Contact Aaron Hunt: 📞 727-262-7920
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Thanks to my college friend from Samford University, Tim Cloud, who is currently thinking of selling his home in Orlando. After talking about the Orlando Market with him tonight on the phone, I decided to write this article. Thank you Tim!
