Redfin, the Seattle-based, technology powered real estate brokerage firm, reported on Thursday (1-5-23) that in Q4, some sellers gave concessions to buyers in 41.9% of sales. This is the highest share of any three-month period in Redfin’s records, and it is up from just over 30% in both Q3 of 2022, and Q4 of 2021. It also outpaces the prior record high of 40.8% from the three months ending in July 2020, when the housing market almost came to a halt due to the onset of the coronavirus pandemic.
Redfin notes that this is a major shift from the pandemic homebuying frenzy of late 2020 and 2021, when record-low interest rates sparked aggressive, almost ferocious competition which, in turn, forced most buyers to over bid asking price and waive every contingency just to have their offer to be even considered.
Today, concessions have made a roaring comeback, as rising mortgage rates, inflation, and economic uncertainty have muted homebuying demand, giving the buyers who remain in the market increased negotiating and buying power.
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