Home sellers gave concessions to buyers in 44.4% of U.S. home-sale transactions in the first quarter. That’s up from 39.3% a year earlier and is just shy of the 45.1% record high at the start of 2023.
This is based on an analysis of data submitted by buyers’ agents across the country, covering rolling three-month periods from 2019 to present. A concession is recorded when an agent reports a seller provided something that helped reduce the buyer’s total cost of purchasing the home. That could include money toward repairs, closing costs and/or mortgage-rate buydowns. It does not include situations in which the seller lowered the list price of their home or lowered the price due to a negotiation with a buyer.
Sellers are increasingly handing out concessions because the housing market has shifted in favor of buyers. Homebuyer demand is sluggish due to high home prices, elevated mortgage rates and economic uncertainty. At the same time, sellers are facing more competition from each other, with listings now at a five-year high. When buyers have more options to choose from, it typically means they have more negotiating power.
Local agents are reporting a majority of offers being written for buyers request concessions from the seller—especially if the buyer is purchasing a home for the first time.
