US Existing Homes Changing Hands at the Lowest Rate in Decades

On Monday, Redfin reported that just 25 out of every 1,000 US homes changed hands during the first 8-months of the year, the lowest turnover rate in decades.

Redfin conducted an analysis of housing turnover by comparing the first eight months of 2024 across different metro areas, home types, and neighborhood types. The company is using turnover as a measure of housing availability; it indicates how often homes are sold in a given area.

Redfin’s analysis used data from 2012–24, but zooming out further, this year’s turnover rate is the lowest in at least the past 30 years. Existing home sales were similar in the early-mid 1990s, but the number of homes that existed was much smaller—meaning the turnover rate was higher.

There were 37.5% fewer homes sold this year than during the middle of the pandemic buying frenzy in 2021 (40 of every 1,000) and 31% fewer homes sold than during the last pre-pandemic year in 2019 (36 of every 1,000).

Redfin believes homes are changing hands at historically low rates for a number of interconnected reasons, including elevated mortgage rates, rising prices and low supply, and economic and political uncertainty.

Adding background and analysis to the report, Redfin Senior Economist Elijah de la Campa said:

“Mortgage rates have already fallen more than one percentage point from their 2024 peak, but we have not yet seen a significant increase in the number of homes changing hands. Of the homes listed this year, many have gone stale because of the lack of demand—especially homes which needed a little extra work. With the majority of homeowners locked into low mortgages, rates will need to keep falling consistently for many to feel comfortable moving on from the deals they secured years ago.”