Home seller concessions reach pre-pandemic levels
- HousingWire
- Jan 18, 2023
- 2 min read
Updated: Apr 15, 2024
A new Redfin report found a record 41.9% of home sellers gave concessions to homebuyers in Q4 of 2022, through money for repairs and mortgage-rate buydowns. This represents the highest increase of any three-month period since July 2020 when Redfin started tracking this data. In Q3 of 2022 and Q4 of 2021, sellers gave concessions in 30% of home sales.
The report also found that homeowners are selling homes for below the asking price. In Q4 of 2022, 22% of Redfin’s home sales included a concession and lower listing price, while 19% included both a concession and a listing-price cut while the home was on the market.
Pandemic boomtowns see a rise in concessions
Concessions are the most popular in the San Diego housing market, with sellers giving concessions to buyers in 73% of home sales. Phoenix (62.9%), Portland (61.6%), Las Vegas (61.3%) and Denver (58.4%) followed.
The increase in concessions over the same period last year was most acute in Phoenix, which was up 33%. Seattle, Las Vegas, San Diego and Detroit all saw the number of concessions rise more than 20% over last year.
Phoenix and Las Vegas in particular were popular destinations during the COVID-19 pandemic and are among the “fastest cooling markets,” per the report. These areas saw a surge in migration as remote workers looked to relocate to affordable and warm areas.
The lowest concession rate of 13.4% was recorded in New York, followed by San Jose (14.4%), Boston (17.5%), Philadelphia (22%) and Austin (33.3%).
Some metros saw a decline in concessions. The rate in Austin decreased from 38.1% in 2021, followed by Philadelphia, New York and Chicago, which were all down 2% or less.
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