Almost half of US home sellers offered concessions in May, the highest share on record for that month, as sellers used financial incentives to close sales in a cooling market, Redfin said Monday.
The brokerage said 46% of home sales nationwide included a concession in May, up from 43% a year earlier, and 16% of transactions involved both a concession and a price drop, also a record May share.
"Buyers have leverage, and some sellers are pricing too high," said Amanda Peterson, a Redfin Premier agent. "With more inventory and less competition, buyers can be selective and negotiate for everything from repairs to closing costs."
The rise in concessions reflects a market tilted toward buyers, with high mortgage rates, elevated prices and broader economic uncertainty keeping many would-be purchasers on the sidelines, Redfin said. With demand subdued, listings have accumulated, prompting sellers to offer incentives to stand out, the brokerage said.
"Sellers, especially those with dated homes that haven't been renovated in decades, are increasingly willing to make concessions because they can be the difference between securing a buyer and leaving their listing sitting on the market," Peterson said.
Earlier in June, Redfin said US home sellers outnumbered buyers by almost half a million in May, with sellers exceeding buyers by an estimated 46.9%.
Mortgage applications in the US declined last week as refinancing and home-purchase demand weakened, the Mortgage Bankers Association said. Government data earlier in the month showed inflation accelerated to 4.2% in May, the highest in about three years, reinforcing expectations that the Federal Reserve will keep interest rates on hold for some time.
