:max_bytes(150000):strip_icc()/GettyImages-2166343943-334915cfd12f4b46b2bb714fca5bdf8a.jpg "Homes Are Changing Hands at Historically Low Rates. Here’s Why")
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Key Takeaways
- Just 25 of every 1,000 homes in the U.S. were sold in the first eight months of 2024, according to Redfin.
- Most would-be homebuyers would have to pay a higher mortgage rate if they bought a home now, so many are waiting.
- The Phoenix and Newark, N.J., metropolitan areas have seen the highest housing turnover this year, with major California metro areas seeing the least.
Homes in the U.S. are being bought and sold at the lowest rate in decades, according to a report from the real-estate brokerage Redfin Corp. (RDFN).
Only 2.5% (or 25 of every 1000) of U.S. homes changed hands in the first eight months of 2024, the lowest rate in at least 30 years, the report found. By comparison, the firm noted that the “pandemic buying frenzy” in 2021 saw 40 of every 1,000 homes change hands.
Contributing Factors
A big reason why is higher mortgage rates. Redfin noted that more than 75% of homeowners currently have a mortgage rate of 5% or less, which makes them hesitant to buy a new house at current rates. Rates went as high as 7.52% in April and, while they’ve come down since, they’re still in the low-6% range.
There are also fewer houses on the market than before the pandemic. In turn, home prices have reached all-time highs, the report said. That combination has many would-be buyers on the sidelines until a downward market trend.
Location, Location, Location
Phoenix and Newark, N.J., had the nation’s highest-turnover metropolitan areas, Redfin found. Meanwhile, California had seven of the 10 lowest-turnover metro areas.