Over 70% of mortgage holders currently enjoy rates under 5%, making them hesitant to sell and take on higher payments elsewhere. Buyers, meanwhile, are deterred by elevated home prices and borrowing costs.
“America’s housing market is defined right now by caution,” said Chen Zhao, Redfin’s head of economic research. “When both sides hesitate, sales naturally fall to historic lows.”
New listings also remain sluggish despite modest improvement. In the first six months of 2025, there were 39 new listings per 1,000 homes—still far below the pre-pandemic norm of 52 per 1,000 homes in 2019.
The turnover rate for single-family homes was 29.9 per 1,000 units, while condos and townhouses were lower at 22.2 per 1,000 units.
Some regional differences emerged. Virginia Beach saw the highest turnover rate at 35.2 per 1,000 homes. New York had the lowest, with just 10.3. California metros such as Los Angeles and San Francisco also reported low turnover, largely due to Proposition 13, which discourages mobility by locking in low property taxes.