High mortgage rates are causing homeowners to stay in place.
The US home turnover rate in the first half of 2023 has fallen to the lowest in at least a decade as high mortgage rates compel owners to stay put, Redfin Corp. said.
About 14 out of every 1,000 US homes changed hands during this period, down from 19 in the same period during 2019, according to the real estate brokerage’s report examining housing turnover since the pandemic.
California, and specifically the San Francisco Bay Area, had the least housing availability out of any state, the report said. The brokerage said only 6 out of 1,000 San Jose homes changed hands this year. From 2019 to 2023, California turnover dropped 30% in the metros of Oakland, San Diego, Los Angeles, Sacramento and Anaheim.
“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,” Redfin Deputy Chief Economist Taylor Marr said in a statement.
The highest turnover rate was in Newark, New Jersey, with 24 of every 1,000 homes changing hands. Nashville and Austin follow closely behind.
Redfin’s report examined turnover rates in the 50 most populous metropolitan divisions in the US. The analysis was based on data, county records and the Department of Housing and Urban Development’s urbanization perceptions small area index.