Current Market Dynamics

As the real estate market shifts, sellers are increasingly offering concessions to accommodate more cautious buyers. Recent trends indicate that listings have surged to a five-year high, empowering house hunters to negotiate better terms.

“Buyers used to ask for concessions to cover little things like repairs. Now they’re negotiating concessions so they can afford to buy a home,” explained Chaley McVay, a Redfin Premier agent based in Portland, Oregon. She noted that many sellers now offer financial assistance for mortgage-rate buydowns or cover other expenses, like homeowners association (HOA) fees, to make their properties more appealing.

According to McVay, these concessions allow sellers to help buyers meet their financial needs without having to compromise on their sale price. “Sellers are feeling nervous because a lot of them bought at the top of the market in 2021 and 2022, and will now be re-buying at a higher mortgage rate,” she said. “That’s why I recommend my buyers ask for concessions instead of a lower sale price — it can be a win-win.”

Regional Trends in Seller Concessions

Data shows that the trend of offering concessions is particularly pronounced in the Pacific Northwest. For instance:

• In Seattle, 71.3% of home sellers provided concessions in the first quarter of 2025, a significant increase from 36.4% a year prior.
• Portland follows suit with a 14.2 percentage point rise in concessions, now at 63.9%.
• Other notable increases were recorded in Los Angeles (up to 56.1%), San Jose (16.7%), and Houston (46%).

Conversely, New York City experienced a sharp decline, with only 5.5% of sellers offering concessions, marking a 15.7 percentage point drop from the previous year. Other markets like Miami (down to 33.8%), San Antonio (44.4%), and Tampa (33.9%) have also seen decreases in concessions.

Redfin analysts suggest that markets in Florida and Texas have adapted to a slower pace for some time, leading sellers to price their homes more competitively, thus reducing the necessity for concessions.

Combining Concessions with Price Adjustments

A notable trend is the combination of seller concessions with price reductions or acceptance of offers below the asking price. According to Redfin data:

• 21.5% of homes sold in Q1 2025 were sold for less than the asking price with a seller concession, an increase from 18.5% last year.
• 16.2% had both a price cut and a concession, rising from 13%.
• 9.9% included a price reduction, a concession, and a sale price below the initial asking price, up from 8%.

The Impact of Market Conditions on Sales

The softening demand is also evident through rising cancellation rates for home purchase agreements. In March, 13.4% of these agreements fell through, affecting approximately 52,000 transactions, which represents one of the highest cancellation rates for that month since 2017. This trend is only surpassed by March 2020, when the COVID-19 pandemic significantly impacted the real estate market.