Nationwide, nearly half of all homebuyers are receiving concessions from sellers, such as contributions towards closing costs or repairs, a trend that has reached its highest point since at least 2020. However, buyers in the New York metropolitan area are experiencing this phenomenon at a significantly lower rate.
In August, seller concessions were included in 44.7% of U.S. home sales, an increase from 42.6% in the previous year, according to a Redfin analysis. This marks the highest share for the month since Redfin began tracking this data in 2020. In stark contrast, the New York metro area saw concessions in only 5.7% of sales, placing it second-to-last among 29 major metropolitan areas studied. San Jose, California, recorded the lowest rate at 4.2%.
This disparity means that national buyers were approximately eight times more likely to receive a seller perk compared to those in the New York area. Seller concessions can encompass a range of incentives, including financial contributions for repairs or closing costs, mortgage-rate buydowns, and even the inclusion of appliances. Redfin clarified that these concessions do not involve reductions in the home's listing or final sale price.
The surge in seller concessions across the country is attributed to a growing inventory of homes for sale, which provides buyers with more options and enhanced negotiating leverage. August was identified as the strongest buyer's market in Redfin's records dating back to 2013, with sellers demonstrating a greater willingness to offer incentives to finalize transactions.
“Buyers know they can be picky. They’re asking for every concession under the sun,” said Amanda Peterson, a Redfin Premier agent in Dallas.
Regions like the Sun Belt are particularly seeing a high prevalence of these incentives, influenced by increased home construction during the pandemic and a subsequent softening of demand. Atlanta led the nation with concessions in 72.8% of sales, followed by Charlotte (67.9%), Phoenix (67.4%), Las Vegas (66.7%), and Raleigh (66.3%). Redfin data also indicates that Nashville, Houston, and Las Vegas are among the top five buyer's markets, with more than double the number of sellers compared to buyers.
Conversely, New York's housing market remains more balanced, with a near-equal number of buyers and sellers, which limits buyers' ability to negotiate for additional perks. The concession rate in New York also declined by 0.9 percentage points compared to the previous year.
Other major markets with lower rates of seller concessions include San Francisco (18.6%), Chicago (21.9%), and Philadelphia (25.5%).
Additionally, a combined 15.8% of home sales nationwide in August involved both a price reduction and a seller concession, the highest August figure on record for this dual incentive.
The Redfin analysis is based on data submitted by its agents and covers the three-month period ending August 31.