Known for its well-planned neighborhoods, top-rated schools, and convenient access to Orlando's vibrant job market and entertainment hubs, Lake Mary offers an appealing blend of suburban serenity and urban convenience. As we move into 2025, the Lake Mary luxury home market should remain competitive, with pricing trends, inventory fluctuations, and buyer behavior shaping the year ahead.

The single-family home market in Lake Mary remained stable in 2024, with only slight fluctuations in pricing. The average list price settled at $666,093, reflecting a modest 0.9% decrease year-over-year, while the median list price held steady at $575,000. Similarly, the average sold price saw a minimal 0.28% dip, landing at $648,721, and the median sold price declined slightly by 1.14%, reaching $563,500.

Despite these minor price adjustments, the market saw a significant surge in sales activity, with 112 single-family homes sold, marking a 49.33% increase from the previous year. However, homes spend more time on the market, with the average days on the market (DOM) rising by 35.48% to 42 days. Meanwhile, new inventory is tightening, as new listings dropped by 9.9% to 91 homes. This combination of increased sales and lower new inventory suggests a competitive market where demand remains strong despite a longer sales cycle.

Lake Mary's single-family market remains robust despite a slight dip in home prices. Sales volume surged by 49.33%, indicating strong buyer demand. However, properties are spending longer on the market, with an increase of 35.48% in DOM. This suggests that while buyers remain active, they are taking more time to make decisions, likely due to higher interest rates or increased inventory.

The condominium market in Lake Mary saw steady price appreciation in 2024, with both list and sold prices trending upward. The average list price increased by 1.31% to $336,269, while the median list price saw a more significant jump of 6.29%, reaching $355,000. The past 12 months saw 43 condominium sales, a 16.22% increase from 2023. However, properties took considerably longer to sell, as the average days on the market (DOM) more than doubled, increasing by 106.45% to 64 days. New inventory fell by 14.93% year over year. This suggests that while buyers remain interested in Lake Mary's condo market, they are taking more time to make decisions, and the reduced number of new listings could contribute to continued price stability or growth into 2025.

Heading into 2025, interest rates will play a significant role in shaping the market. The Federal Reserve has hinted at potential rate cuts, which could encourage more buyers to enter the market. If mortgage rates decline—they've held steady around 6.75% for the past year—affordability should improve, driving up demand. However, if rates remain elevated, including hovering above 7%, we may see a continued slowdown in how quickly homes sell as buyers take longer to weigh their options.

Inventory continues to pose a challenge, with both single-family homes and condos seeing a decrease in new listings—single-family homes down 9.9% and condos down 14.93%. If inventory continues to tighten, expect continued price appreciation due to supply constraints. Limited housing availability has long been a challenge in desirable areas like Lake Mary, where demand remains steady year-round.

Lake Mary has long been a magnet for professionals, families, and retirees seeking a high-end lifestyle, excellent schools, and easy access to Orlando. Though in-office work mandates are rising for corporate employees, buyers continue prioritizing suburban areas that offer a mix of work-life balance and accessibility to amenities. This trend will continue through 2025, supporting home values and keeping demand high.

While home price appreciation in Lake Mary has slowed compared to previous years, prices continue trending upward. Analysts predict a 5% to 7% increase in home values in 2025, driven by tight inventory and steady demand.

With new listings declining and buyer demand strong, sellers will continue to have an advantage. However, with homes taking longer to sell and buyers becoming more selective, the market is moving toward a more balanced state rather than the extreme seller's market seen in previous years.

As has been the norm for the past several years, high-end residential markets are thriving, and Lake Mary is no exception—with properties in upscale communities like Heathrow, Timacuan, and Magnolia Plantation to prove very popular with affluent buyers in the coming months.

For buyers, 2025 may bring more room for negotiation as homes sit on the market longer. With interest rates potentially dipping, financing options may improve. Buyers should act decisively on well-priced properties, as inventory is not increasing significantly.

Occupying sellers is the need to price strategically. While demand remains strong, overpricing could lead to longer time on the market. Homes that are well-presented and competitively priced will continue to attract serious buyers. Of course, sellers have the built-in benefit of Lake Mary's enduring appeal—top-rated schools, scenic parks, a strong sense of community, and proximity to Orlando—which will ensure it remains an attractive option for a diverse range of buyers.

The Lake Mary real estate market is poised for another strong year, with moderate price appreciation, a slower sales cycle, and tight inventory shaping the landscape. While buyers will likely have more time to make decisions, competition will remain fierce in highly desirable neighborhoods. Sellers, meanwhile, can expect solid returns, especially if they price competitively and present their homes well.

Lake Mary continues to be one of the best places to buy and invest in Central Florida real estate. Whether you're looking to purchase a home or considering selling in 2025, contact the Mel Bernstein Team today to start your Lake Mary real estate journey.