The Central Florida housing market in mid-2026 looks meaningfully different from the pandemic-era frenzy that defined much of the early 2020s. Inventory is moving more steadily, out-of-state buyers remain active, and a growing number of buyers are finally accepting that historically low interest rates are not coming back. But persistent pricing gaps between seller expectations and market reality continue to slow deals that should otherwise be closing.
Lisa Foor, Vice President of Sales and Marketing at Newberry Homes & Development, has spent over 25 years in the Central Florida market. Her dual role, overseeing custom home sales while also directing a nine-agent boutique real estate team, gives her a broad view of where buyers and sellers are finding common ground, and where they are not.
One of the most consistent friction points in the current market is seller pricing expectations. Many homeowners who purchased during the 2020–2022 run-up are still benchmarking their home’s value against that period’s peak prices, even when comparable sales tell a different story.
Foor explains that many sellers assume their homes have appreciated 20 to 30 percent since they purchased during the pandemic, without accounting for the premiums they paid above list price at the time. The key distinction is between what similar homes are listed for and what they have actually sold for. “That’s what you’re compared to,” she notes, “not what it’s for sale for; it’s what it sold for.”
When sellers price accurately, the results are clear. Foor has had listings go under contract within two days. When they do not, the same properties can sit for six to eight months. Beyond price, condition plays a role too. Buyers today largely want turnkey homes, and properties that need significant renovation, or simply lack curb appeal, tend to struggle regardless of the broader market.
Interest rates remain the most commonly cited barrier for buyers, and affordability concerns are genuine. At a 6% rate, the gap between what buyers want and what they can afford in their preferred location becomes a real constraint.
Foor illustrates the tradeoff directly: a buyer with a $350,000 budget cannot purchase in downtown Orlando, but communities like Davenport or Kissimmee on the outskirts remain within reach. “If they’re open to the outskirts of Orlando, then we have an opportunity to stay in that budget,” she says.
Some builders in the region are helping close that gap with incentives, including fixed rates as low as 3.99% and closing cost assistance – though these opportunities are not always widely known. Part of Foor’s role is helping buyers understand what is available beyond their immediate search radius.
While the mid-range market faces the most pressure, both ends of the pricing spectrum are showing relative resilience. Buyers in the $750,000-and-above range tend to have stronger financial footing and are less rate-sensitive, often purchasing second homes or relocating from higher-cost markets. At the other end, homes priced under $350,000 continue to move steadily, driven by demand that consistently outpaces supply at that price point.
It is the middle segment, roughly $400,000 to $600,000, where the combination of elevated rates, seller pricing expectations, and buyer affordability limits creates the most friction.
Relocation from other states remains a steady source of demand. The Lake County area and surrounding communities continue to attract buyers from New York, New Jersey, California, and Texas. “I haven’t really seen a decrease of those types of people moving here,” Foor says.
Tourism-driven seasonal activity is also expected to support the market through the summer months, with Central Florida’s visitor economy historically correlating with increased residential interest from out-of-state buyers exploring permanent or part-time relocation.
One development that could meaningfully reshape purchasing power in Florida is a property tax measure on the November 2026 ballot. If passed, it could eliminate or significantly reduce property tax obligations for homeowners, a change that would effectively increase what buyers can afford to spend on a home.
In parts of Orlando, annual property taxes currently run between $10,000 and $25,000, adding several hundred dollars per month to a homeowner’s carrying costs. Removing that burden would expand purchasing power considerably. Foor estimates the savings could reach $10,000 to $15,000 or more per household annually, likely driving both larger purchases and increased migration to the state.
Newberry’s model stands apart from both traditional brokerages and production builders. As a design-to-build firm with an in-house architect, the company works with clients across a wide range of project sizes, from homes just under 1,500 square feet to a 20,000-square-foot project currently under development in the Daytona Beach area. Other custom builders operate in the region, but Newberry’s dual-track structure offers a distinctive approach.
One structural advantage of that model is the ability to move clients between custom and production options depending on their budget and timeline. When buyers explore custom construction and encounter the true cost, often a surprise for those who assume it is cheaper than buying existing, the team can redirect them to production builder options through the boutique real estate side. The reverse is also true: buyers frustrated with cookie-cutter layouts can be introduced to the custom path.
“I have a double opportunity to win a client over,” Foor says.
To manage expectations early, Newberry directs prospective custom clients to an online cost calculator before any formal conversations begin, a straightforward way to filter for buyers genuinely ready for the custom process and avoid pricing surprises that can derail deals later.
Construction method is becoming a more prominent factor in buying decisions as hurricane seasons grow more severe and Florida’s insurance market remains under pressure. Newberry uses steel-frame construction that allows homes to withstand winds up to 200 miles per hour, a meaningful advantage in a region that regularly faces tropical weather.
The approach also carries sustainability benefits. A recently completed home in downtown Orlando incorporated steel recycled from eight crushed cars, reducing the need for traditional wood framing while improving durability and lowering long-term maintenance requirements.
For buyers, sellers, and developers operating in Central Florida right now, the market rewards preparation, realistic pricing, and a willingness to look beyond the most obvious locations and options. The mid-range segment remains the most constrained, but creative financing, geographic flexibility, and construction choices that account for insurance and storm risk are giving prepared buyers paths forward that did not exist in the same form two years ago.
About the Expert: Lisa Foor is the Vice President of Sales and Marketing at Newberry Homes & Development, with over 25 years of experience in the Central Florida market. She oversees custom home sales and directs a nine-agent boutique real estate team.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
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