- 44.4% of home sellers in the U.S. offered concessions in Q1 2024, nearing the record high of 45.1% set in early 2023.
- Seattle leads with the highest percentage of concessions at 71.3%, followed by Portland at 63.9%.
- Approximately 52,000 home purchase agreements, or 13.4% of contracts, were canceled in March 2024, the third highest March level since 2017.
According to Redfin (RDFN, Financial), a significant shift is occurring in the U.S. housing market with 44.4% of home sellers offering concessions in the first quarter of 2024. This figure is just shy of the record 45.1% reached at the start of 2023 and a notable increase from 39.3% year-over-year. These concessions commonly include financial support for repairs, closing costs, and mortgage-rate buydowns.
The market dynamics have increasingly favored buyers due to high home prices, elevated mortgage rates, and pervasive economic uncertainty. The housing supply has surged to a five-year high, granting buyers enhanced negotiating power. In particular, Seattle has emerged as a frontrunner among major metros, with concessions appearing in 71.3% of sales, a dramatic increase from the previous year's 36.4%. Portland follows closely with a concession rate of 63.9%.
Furthermore, 21.5% of homes sold below the asking price while still including concessions, an increase from 18.5% the previous year. March 2024 saw about 52,000 canceled home purchases, accounting for 13.4% of all contracts, marking the third-highest March cancellation rate since 2017.
Chaley McVay, a Redfin Premier real estate agent in Portland, reports a growing trend of buyers negotiating concessions to afford home purchases, citing instances where sellers cover mortgage-rate buydowns or HOA fees. This trend underscores the shifting landscape where sellers are more frequently compelled to offer incentives to close deals.
