In early 2025, the U.S. housing market is experiencing its slowest pace since early 2020. Homes under contract now spend an average of 54 days on the market, a duration not seen in nearly five years. Active listings—the total number of homes for sale—rose by 12.1% year-over-year, reaching the highest level since 2020. On the surface, this increase might suggest a surge in housing availability, but a deeper look reveals a more complex narrative.

This slowdown is attributed to the growing number of homes lingering on the market, high mortgage rates hovering around 7%, and a 4.8% increase in home prices compared to the previous year. Consequently, the median monthly mortgage payment has risen to $2,753, approaching record levels1. This uptick indicates that many properties are not meeting buyer expectations, often due to pricing concerns.

Why Are Homes Sitting on the Market Longer?

Meme Loggins, a Redfin Premier real estate agent in Portland, OR, observed, “A lot of listings on the market are either stale or uninhabitable. There’s a lot of inventory, but it doesn’t feel like enough.” She emphasized the importance of fair pricing, noting that well-priced homes in good condition sell quickly, while overpriced ones can remain unsold for extended periods.

The trend of prolonged listings is particularly evident in certain metropolitan areas. Miami leads with 63.8% of homes on the market for over 60 days, followed by Austin at 62.4%. Other cities, including Portland, Fort Lauderdale, Orlando, San Diego, and West Palm Beach, also report high percentages of long-standing listings.

The Impact of High Prices and Mortgage Rates

Elevated home prices and high mortgage rates have made homeownership less accessible for many, leading to a decline in first-time homebuyers. In 2024, the share of first-time buyers dropped to 24%, the lowest since records began in 1981.

These housing market dynamics present unique challenges for companies managing employee relocations. Relocating employees may face difficulties in selling their current homes and purchasing new ones, leading to potential delays and increased costs.

How CapRelo Can Provide Invaluable Support

Specializing in global relocation services, CapRelo offers comprehensive assistance to ensure a seamless transition for employees. Our services include connecting clients with best-in-class real estate agents, moving companies, and temporary living providers. With a network spanning all 50 U.S. States, 10 Canadian provinces, and 160 countries, CapRelo ensures that relocating employees receive personalized care and quality service, mitigating the challenges posed by the current housing market. For businesses and relocating employees, partnering with experienced relocation services like CapRelo can make a significant difference in navigating these complexities.