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edfin reports a significant increase in sellers offering concessions to buyers, with 44.4% of U.S. home-sale transactions involving concessions in the first quarter. This is up from 39.3% a year earlier and just shy of the record high of 45.1% at the start of 2023. Concessions can include money towards repairs, closing costs, or mortgage-rate buydowns.

    The rise in concessions reflects a shift in market dynamics, with buyers facing high home prices, elevated mortgage rates, and economic uncertainty. At the same time, sellers are competing with each other due to a five-year high in listings, giving buyers more negotiating power. Many homes are also overpriced, leading to longer market times and increased pressure on sellers to offer concessions.

    According to Redfin agents, many buyers are now requesting concessions as part of their offers, particularly first-time homebuyers. Sellers are often offering mortgage-rate buydowns or covering costs like HOA fees to secure a sale. This trend is driven in part by sellers' concerns about net proceeds, given that they may have purchased homes at the peak of the market and now face higher mortgage rates.

    Redfin Premier agent Chaley McVay notes that buyers are no longer just asking for concessions to cover minor repairs; they're negotiating for larger concessions to make their offers more competitive. Sellers who offer concessions can avoid lowering their sale price, which may be below what they had in mind.