Core Insights - The U.S. housing market is experiencing its lowest turnover rate since the early to mid-1990s, with only 28 out of every 1,000 homes changing hands in the first nine months of 2025 [1] Group 1: Factors Contributing to Low Turnover - High borrowing costs and elevated home prices are significant barriers for homebuyers, with the average 30-year fixed mortgage rate remaining around 6% despite a slight decrease from its peak of over 7% in Q4 2023 [2] - The weakening job market and economic growth contribute to homeowners' reluctance to buy or sell, leading to a natural decline in transaction pace [3] Group 2: Regional Variations - Turnover rates vary by region, with major cities like New York and Los Angeles showing the lowest rates at approximately 10 to 11 sales per 1,000 homes, influenced by state laws like California's Proposition 13 that incentivize homeowners to remain in their properties [4] Group 3: Market Implications - The current market conditions result in reduced supply for buyers and diminished demand, leading to a sluggish housing market characterized by fewer transactions and more homes remaining unsold [6] - A potential drop in mortgage rates could encourage buyers to re-enter the market and prompt sellers to consider moving [7]