US Existing-Home Sellers Increase Concessions and Price Cuts in August

Redfin reported that home sellers gave concessions to buyers in 44.7% of US home sales in August, up from 42.6% a year earlier and the highest share for the month since at least 2020.

Redfin attributed the increase to a more buyer-friendly housing market, with more homes for sale and fewer buyers competing for them. Seller concessions can include covering closing costs, paying for repairs, or providing other incentives to complete a sale.

Eight of the 10 metro areas where concessions were most common were in the Sun Belt. Atlanta led at 72.8% of home sales, followed by Charlotte, NC, at 67.9%; Phoenix at 67.4%; Las Vegas at 66.7%; and Raleigh, NC, at 66.3%. Nashville, TN; Houston; Denver; Riverside, CA; and Virginia Beach, VA, rounded out the top 10, with concessions offered in roughly three out of five sales.

Some sellers also cut asking prices in addition to offering concessions. Nationwide, 15.8% of homes sold in August had both a price reduction and a concession, up from 15.6% a year earlier and the highest August share in Redfin records.