Only 1% of all U.S. homes, or approximately 14 of every 1,000 residences, changed hands during the first half of 2023, according to data from Redfin (NASDAQ:RDFN). That’s down from 19 of every 1,000 during the same period of pre-pandemic 2019 and the lowest turnover rate in at least a decade.
The situation is not limited to a particular market – only 16 of every 1,000 large suburban houses have changed hands this year, which two-thirds as many from the same period in 2019, whereas roughly 11 of every 1,000 two- and three-bedroom single-family homes in urban neighborhoods sold in the first six months of 2023, compared to 14 of every 1,000 during the same period in 2019.
Northern California has the lowest turnover rate – San Jose recorded a level where only six of every 1,000 homes changed hands in the first half of 2023, the lowest rate of the 50 most populous metros. Five other California markets –Oakland, San Diego, Los Angeles, Sacramento and Anaheim – each recorded an environment where about eight of every 1,000 homes turned over to a new owner.
“The quick increase in mortgage rates created an uphill battle for many Americans who want to buy a home by locking up inventory and making the homes that do hit the market too expensive,” said Redfin Deputy Chief Economist Taylor Marr. “The typical home is selling for about 40% more than before the pandemic.”
Still, some markets saw higher than normal levels of turnover activity. Newark, New Jersey, had the highest turnover rate with 24 of every 1,000 homes changing hands during the first six months this year, followed closely by Nashville (23 of every 1,000 homes) and Austin (22 of every 1,000).
