The United States is facing one of its quietest housing cycles in decades, with the rate of homes changing hands falling to levels not seen since the 1990s.
Redfin’s latest analysis shows that only about 28 of every 1,000 homes were sold between January and September, a marked decline that illustrates how rarely owners are moving.
The turnover rate offers a clearer sense of homeowner behaviour than simple sales figures, showing how long people are staying in their properties and how reluctant they are to re-enter the market.
Redfin chief economist Daryl Fairweather said, “It’s not healthy for the economy that people are staying put,” adding that the current rate is roughly 30 per cent below the average recorded from 2012 to 2022.
The Blade reported that traditionally, changes in work, lifestyle or family size trigger a move, yet many households now appear to have fewer opportunities to relocate or are unable to manage the cost of selling and buying at today’s prices and borrowing conditions.
Mr Fairweather added: “If people are stuck, it’s reflective of how the economy is stuck,” describing a labour market that is neither expanding nor shedding staff at its usual pace.
Recent data reflects this softness: the U.S. added only 22,000 jobs in August, and several large firms, including Microsoft and Amazon, have announced cuts.
This climate of uncertainty is making many prospective sellers cautious. Another key factor keeping owners in place is the low-cost home loans secured during 2020 and 2021, which are proving hard to give up as current mortgage rates remain higher than buyers would prefer.
Although rates have eased slightly and sales improved modestly in the past month, the market is still weighed down by affordability pressures.
The median price of an existing home has climbed by 53 per cent over the past six years, stretching budgets despite the recent dip in borrowing costs. Overall, the mix of weak job growth, higher financing costs and rapid price rises continues to hold back movement in the housing market.
