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Market Moves Slowly in 2024
If you've been considering buying or selling a home this year, you've likely noticed that things are moving slowly. According to Redfin, only 25 out of every 1,000 U.S. homes changed hands in the first eight months of 2024—the slowest rate in over three decades.
Why the Market Is Moving Slowly Several factors are contributing to this slowdown:
- High Mortgage Rates: Many homeowners are staying put with lower mortgage rates locked in from previous years, causing a “lock-in effect” that reduces turnover.
- Record Home Prices: Prices are high due to limited supply, keeping some buyers priced out.
- Economic Uncertainty: Concerns about a potential recession and the upcoming election have caused a “wait-and-see” approach among both buyers and sellers.
Top Metro Areas for Home Sales
Phoenix saw the most activity this year, with 38 out of every 1,000 homes changing hands, followed by Newark, Nashville, and Tampa. In Texas, Austin had the highest turnover at 29.9 per 1,000 homes.
Hope for 2025 and Beyond
- The National Association of Realtors (NAR) forecasts an increase in home sales as mortgage rates potentially ease and home prices grow more gradually. NAR’s Chief Economist, Lawrence Yun, projects existing-home sales to rise in 2025 and 2026, offering hope for more movement in the market soon.
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