Lowest Turnover in 3 Decades New Real Estate Report Finds

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Real Estate Report

A new Real Estate Report reveals just how stagnant the U.S. housing market has become, with only 2.5% of homes changing hands in the first eight months of this year—the lowest turnover rate in three decades.

According to an analysis by Redfin’s Real Estate Report, the housing market is frozen as Americans grapple with record-high home prices and elevated mortgage rates, creating one of the most unaffordable markets in a generation.

Redfin’s economic research lead, Chen Zhao, noted in the Real Estate Report that 2024 has been particularly disappointing, with home sales down 37% compared to the same period in 2021.

Geographic differences are stark; Los Angeles reported the lowest turnover rate, with only 15 of every 1,000 homes changing hands—a 32% drop from 2019, according to the Real Estate Report. Realtor® Jeremiah Vancans attributed this to stagnant wages and high construction costs, making affordable housing scarce, as highlighted in the Real Estate Report.

Mortgage rates have recently dropped to 6.08%, but many homeowners locked into lower rates are hesitant to sell, contributing to the inventory shortage. The Real Estate Report estimates that the U.S. needs to build over 2 million homes to meet demand, while the median sales price of existing homes rose to $416,700 in August.

The Real Estate Report also highlights that despite the slight drop in mortgage rates, the impact on home sales remains minimal due to high price tags and low inventory. Zhao warns in the Real Estate Report that reviving the market may take five to ten years without significant changes.

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Opendoor Names New CFO and CTO to Navigate Challenging Market

Opendoor Technologies has announced the appointment of two new executives amid a challenging market.

On October 1, 2024, Opendoor named Selim Freiha as its new Chief Financial Officer and Shrisha Radhakrishna as Chief Technology and Product Officer. CEO Carrie Wheeler emphasized that these appointments are crucial for shaping the future of real estate.

Freiha joins from Alphabet Inc., where he led Corporate Financial Planning and Analysis, and previously held key finance roles at eBay. He expressed enthusiasm for Opendoor’s mission to simplify real estate transactions, especially as the company navigates a difficult market. Opendoor first began trading on the stock market in March 2020, hitting a historic high of $22.73, but has struggled in 2024, not exceeding $4.50.

Radhakrishna comes from LegalZoom, where he transformed their technology platform, and has a notable history with Intuit, pioneering products like QuickBooks. He is eager to drive innovative, customer-centric solutions at Opendoor as the company seeks to regain momentum.

Both executives will officially join the Opendoor team in November. Opendoor’s next earning announcement is scheduled for November 7th. 

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HAR Partners with Unlock MLS to Expand

And finally, the Houston Association of Realtors®, or HAR, has partnered with Unlock MLS in Austin to enhance listing access for subscribers.

As of Tuesday, this new data share agreement will provide HAR’s 48,000 MLS subscribers access to thousands of additional listings throughout Texas by the end of the year. This initiative follows HAR’s previous collaboration with the San Antonio Board of Realtors®, effectively covering nearly 60% of the Texas housing market.

HAR Chair Thomas Mouton highlighted the importance of collaboration in the industry, stating that this partnership will increase opportunities for members and enhance market efficiency. HAR President and CEO Bob Hale echoed this sentiment, noting that the agreement gives members a competitive edge in a dynamic real estate environment.

Unlock MLS CEO Emily Chenevert emphasized the value of comparative market intelligence, enabling agents to provide tailored market expertise. The new listings will be accessible via the Matrix interface, allowing for easy searches by city, zip code, or subdivision.

Source: Link

 

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