The share of houses sold so far is the lowest in 30 years

Sliding rates should help market gain traction, but buyers haven't responded yet

The share of houses sold so far is the lowest in 30 years

Sliding rates should help market gain traction, but buyers haven't responded yet
CONCEPT 2_5 percent of houses sold

Just 2.5% — roughly 25 of every 1,000 — of homes were sold in the first eight months of 2024, according to Redfin. It’s the lowest the residential turnover rate has been in at least 30 years, per the real estate brokerage’s data.

It’s not surprising, given the affordability and supply challenges faced by the current market, that there were 37.5% fewer residential properties sold this year than there were in the midst of the pandemic homebuying boom in 2021. But there were also still 31% fewer homes sold through August this year than there were during the same period in 2019, pre-pandemic.

Homes changed hands slightly more often in the suburbs and in rural areas more than they did in urban areas thus far this year. Approximately 2.5% out of every 1,000 suburban and rural homes were sold through August, in line with the share of all homes sold. In contrast, roughly 24 out of every 1,000 urban homes changed ownership in 2024’s first eight months. However, turnover for properties in suburban and rural areas has fallen faster than it has in urban areas: The turnover rate for suburban and rural single-family homes has dropped 32.9% since 2019, compared to 25.8% in urban areas within the same timeframe.

Many market observers are expecting the market to gain some momentum thanks to sliding rates, which began a downward trend in anticipation of the Federal Reserve’s first benchmark rate cut in September. But buyers have yet to respond, said Elijah de la Campa, Redfin’s senior economist.

“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,” said de la Campa. “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.”

Notably, the rate of homes being listed for sale is also down to its lowest point since at least 2012, highlighting the inventory issues the market has faced thus far in 2024. Just 32 of every 1,000 homes were listed in the first eight months of the year, down 30% from 2019.

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