What's New in the Market

In the first eight months of 2024, only 25 out of every 1,000 U.S. homes changed hands, marking the lowest turnover rate in decades, according to recent data. Elevated mortgage rates, rising prices, low housing supply, and economic uncertainty have led many homeowners to stay put, with fewer listings and sales. The rate of homes sold is down 37.5% from the 2021 pandemic buying frenzy and 31% lower than in 2019. In all, suburban and rural homes saw slightly more turnover than urban ones.

Despite high interest rates and low inventory, experts don't anticipate a housing market crash similar to 2008. Instead, a market correction is still expected, with home prices stabilizing and inventory levels improving as mortgage rates gradually decline. Key factors influencing the market include inflation, employment rates, and inventory levels. While some regions may see price drops, especially where pandemic-era booms occurred, areas with strong job growth and population increases are likely to remain steady. Experts advise buyers and sellers to focus on factors within their control, such as improving credit scores. The upcoming presidential election may also influence future housing policies, but we won't know what those could be until that time.