US Home Sellers Gave Concessions in 44% of Sales in Q1

On Monday, Redfin reported that US home sellers gave concessions to buyers in 44.4% of home-sale transactions in Q1. That’s up from 39.3% a year earlier and just below the record high of 45.1% set at the beginning of 2023.

The data is based on an analysis of home sales involving Redfin buyers’ agents, covering rolling three-month periods from 2019 to the present.

Redfin attributes the rise in concessions to a market that is increasingly favoring buyers. Homebuyer demand remains weak amid high prices, elevated mortgage rates, and ongoing economic uncertainty. At the same time, sellers are facing more competition, with listings now at a five-year high. Redfin agents also report that many homes are overpriced, often sitting on the market longer and prompting sellers to offer concessions to close a deal.

In March alone, about 52,000 home-purchase agreements were canceled—13.4% of all homes that went under contract that month. That’s slightly higher than a year earlier and marks the third-highest March cancellation rate in records dating back to 2017. The highest was in March 2020, when the pandemic abruptly stalled the housing market.