![]() ![]() Homebuyers have the smallest pool of options in the Bay Area: Just 6 of every 1,000 San Jose homes have turned over to a new owner this year That’s down from 16 of every 1,000 in 2019. Two- to three-bedroom homes in suburban neighborhoods are essentially tied with their urban counterparts for the lowest turnover rate, with 11 of every 1,000 changing hands this year. 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. Smaller houses in the city have the lowest turnover rate of all the home types in this analysis. Modestly sized single-family homes in the city are hardest to find: Just 11 of every 1,000 two- and three-bedroom urban houses sold in the first half of this year Supply of that home type wasn’t depleted as much because there wasn’t as much demand for them. ![]() The turnover rate of condos and townhomes didn’t shrink as much as that of single-family homes during the pandemic. ![]() The turnover rate has dropped for every size home in every type of neighborhood over the last four years (though buyers will have an easier time finding something for sale in certain metro areas). That’s not happening, because so many of those homeowners have low mortgage rates.” Those are hardest to find because for people to buy one, someone needs to sell one. “That goes for buyers in every price range in every type of neighborhood, but what people want most are those move-in ready, mid-sized homes in neighborhoods with highly rated schools. “New listings normally hit the market on Thursdays, and I have buyers who are excitedly checking their Redfin app Thursday mornings, only to find nothing new,” said Phoenix Redfin Premier agent Heather Mahmood-Corley. That means buyers of that home type have 33% fewer houses to choose from. Just about 16 of every 1,000 four-bedroom-plus suburban single-family homes sold in the first half of this year, down from 24 of every 1,000 that sold in the same period in 2019. House hunters searching for large homes in the suburbs have seen the biggest drop in their options. The turnover rate has shrunk most in the suburbs: 16 of every 1,000 large suburban houses have changed hands this year, two-thirds as many as 2019 Financial incentives, like reducing transfer taxes for home sellers and subsidizing major moves with tax breaks, would also add to supply.” Building more housing is imperative, and federal and local governments can help by reforming zoning and making the building process easier. But there are a few other things that would boost turnover and help make homes more affordable. “Mortgage rates dropping closer to 5% would make the biggest dent in the affordability crisis by freeing up some inventory and bringing monthly payments down. The typical home is selling for about 40% more than before the pandemic,” said Redfin Deputy Chief Economist Taylor Marr. “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. Finally, 2022's soaring mortgage rates-average rates nearly doubled from January to June-exacerbated the shortage by handcuffing homeowners to their comparatively low rates. The homebuying boom of late 20, driven by record-low mortgage rates, remote work and a surge in investor purchases, depleted already low inventory levels. In 2018, Freddie Mac estimated that about 2.5 million more homes needed to be built to meet demand, with the shortfall mainly due to a lack of construction of single-family homes. That’s down from 19 of every 1,000 during the same period of 2019 and the lowest turnover rate in at least a decade. homes changed hands during the first six months of 2023, according to a new report from Redfin ( ), the technology-powered real estate brokerage. SEATTLE-( BUSINESS WIRE)-(NASDAQ: RDFN) - Roughly 14 of every 1,000 U.S. ![]()
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