By Lara Sanli | Bloomberg
A recent report from Redfin Corp. reveals a significant decrease in the US home turnover rate during the first half of 2023, reaching its lowest point in over a decade. The main driver behind this decline is the high mortgage rates, which are discouraging homeowners from selling their properties and opting to stay put instead.
According to the report, only 14 out of every 1,000 US homes changed hands in this period, a noticeable decrease from the 19 per 1,000 recorded in the same period of 2019. Redfin’s analysis focuses on housing turnover trends since the onset of the pandemic.
California, particularly the San Francisco Bay Area, stands out as the state with the least housing availability, as highlighted in the report. A mere 6 out of 1,000 San Jose homes were sold this year. Furthermore, between 2019 and 2023, turnover rates in California decreased by 30% in major cities such as Oakland, San Diego, Los Angeles, Sacramento, and Anaheim.
Commenting on the situation, Redfin Deputy Chief Economist Taylor Marr stated, “The rapid increase in mortgage rates has presented a significant obstacle for many Americans aiming to purchase a home. It has caused a depletion of housing inventory and led to inflated prices for the limited properties that do become available.”
Newark, New Jersey, recorded the highest home turnover rate, with 24 out of every 1,000 homes changing hands. Nashville and Austin closely followed suit. Redfin’s comprehensive report evaluated turnover rates in the 50 most populous metropolitan divisions across the United States. The analysis was based on data from county records and the Department of Housing and Urban Development’s urbanization perceptions small area index.
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