A recent Redfin report revealed exciting news for homebuyers: a record 41.9% of home sellers offered concessions in Q4 of 2022!
This means that more and more sellers are offering incentives such as money for repairs and mortgage-rate buydowns to help buyers make the purchase.
This is the highest increase in any three-month period since July 2020, when Redfin first began tracking this data. In Q3 of 2022 and Q4 of 2021, sellers offered concessions in 30% of home sales.
The report also highlighted that homeowners are willing to sell their homes for less than the asking price.
In Q4 of 2022, 22% of Redfin’s home sales included a concession and a lower listing price, while 19% included both a concession and a listing-price cut while the home was on the market.
This is great news for buyers as it means they have more bargaining power and can secure a better deal.
Home sellers are realizing that with the current rise in mortgage rates and inflation, concessions are becoming more popular, reducing the overall cost for homebuyers.
As sellers realize that they’re not going to get $80,000 over the asking price like their neighbor did last year, they are becoming more flexible and open to offering deals to buyers.
Homebuyers are feeling empowered and know that sellers have built up so much equity during the pandemic that they can afford to offer sizable concessions.
Overall, it seems like we are heading back to pre-pandemic levels of concessions in the housing market, which is great news for buyers looking for a better deal on their dream home.