With the Turnover Rate at a Record Low, the US Housing Market Remains Stuck
Just 2.5% of all US homes sold during the first eight months of 2024, leaving buyers and sellers at a stalemate
Oct. 1, 2024
Image: digerati / stock.adobe.com
Homes are not selling as quickly as they used to, leaving some on the market for longer.
The U.S. housing market seems to be at a standstill, with fewer homes selling than ever before. Despite improvements in affordability, just 2.5% of U.S. homes traded hands during the first eight months of 2024, according to National Mortgage Professional. This is the lowest turnover rate in decades. Overall, home sales have dropped 37.5% when compared with the 2021 pandemic buying surge and 31% compared with 2019. The decline in home sales is largely due to high mortgage rates, with most homeowners locked into rates below 5%. Even though rates saw a slight dip to around 6% in August, that hasn't significantly boosted sales.
Another reason is rising prices and low supply. U.S. home prices have hit record highs this year, with just enough buyer demand to keep prices consistently ticking up; however, there are far fewer homes listed for sale compared to pre-pandemic levels.
