Redfin: Only 2.5% of Homes Have Changed Hands This Year

(Image courtesy of Redfin; Breakout image courtesy of Robert Broderick/pexels.com)

Redfin, Seattle, found only 2.5% of homes in the U.S.–or 25 of every 1,000–have changed hands through August 2024–the lowest level in decades.

Redfin noted that while existing home sales were similar in the 1990s, there were fewer homes–so even then, the turnover rate was higher.

There were 37.5% fewer homes sold in the first eight months of this year than in 2021 and 31% fewer than pre-pandemic 2019.

“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,” said Redfin Senior Economist Elijah de la Campa. “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.”

Similarly, listings are low compared with the past few years–only 32 out of every 1,000 homes were listed for sale in the first eight months of the year, down 30% from pre-pandemic 2019 and down 29% from 2021.

That’s the lowest level since at least 2012–the earliest year with such data available.

Suburban and rural areas saw slightly more movement than urban areas–25 out of every 1,000 single-family homes and condos in suburban and rural areas sold through August, compared with 24 out of 1,000 in urban areas.