T
he US housing market is facing a significant slowdown, with only 2.5% of homes changing hands in the first eight months of this year. This is the lowest turnover rate in at least three decades, according to Redfin's analysis. Chen Zhao of Redfin notes that the data suggests the market has been "frozen" since 2023 and has failed to improve in 2024.

    A healthy real estate market typically sees around 30-40 homes per 1,000 changing hands annually. In contrast, only about 25 homes per 1,000 sold from January to August this year. Compared to the same period in 2021, sales are down by 37%, and compared to 2019, they're 31% slower.

    The slowest market is in Los Angeles, where only 15 homes per 1,000 changed hands, a drop of nearly one-third since 2019. In contrast, Phoenix has the highest turnover rate at 38 homes per 1,000. Local Realtor Jeremiah Vancans attributes this to stagnant wages and limited new construction inventory. Mortgage rates are also a factor, with most active mortgages having interest rates below 4%. This lack of incentive for sellers is contributing to the market's stagnation.