Home sellers offer concessions in nearly half of U.S. sales in Q1: Redfin
Home sellers offer concessions in nearly half of U.S. sales in Q1: Redfin
Home sellers offered concessions to buyers in 44.4% of U.S. transactions in Q1 2025, online brokerage Redfin (RDFN) said in a report released on Monday. That's up from 39.3% a year ago and just shy of the 45.1% record high at the start of 2023 as high home prices, elevated mortgage rates and economic jitters weigh on homebuying demand.
A concession is recorded when an agent reports a seller provided something that helped reduce the buyer’s total cost of purchasing the home, including money toward repairs, closing costs and/or mortgage-rate buydowns.
With the housing market tilting in favor of buyers, some sellers are lowering their asking prices in addition to handing out concessions. Some 21.5% of homes sold during Q1 had a final sale price below the asking price as well as a concession, up from 18.5% a year before. The share of homes sold that had a price reduction and a concession rose to 16.2% from 13% a year ago. And 9.9% had a concession, a price cut and a final sale price below the original list price (vs. 8% a year earlier).
It's also worth noting that home listings stood at a five-year high in Q1, the report said, underscoring a more competitive landscape for sellers. "When buyers have more options to choose from, it typically means they have more negotiating power," it explained. "Plus, Redfin agents report that many homes are overpriced, which often means they linger on the market, forcing sellers to offer concessions to find a buyer."
The Redfin (RDFN) report is based on an analysis of data submitted by Redfin buyers’ agents across the country, covering rolling three-month periods from 2019 to present.
By region, sellers in Seattle, Washington gave concessions to buyers in 71.3% of transactions in Q1, the highest share among the 24 U.S. metro areas analyzed by Redfin (RDFN), and up significantly from the 36.4% share of a year earlier.
The next biggest increase was seen in Portland, Oregon, climbing 14.2 percentage points to 63.9%. From there, Los Angeles, California (+11 ppts to 56.1%), San Jose, California (+10.6 ppts to 16.7%) and Houston, Texas (+6.2 ppts to 46%).
By contrast, New York experienced the biggest drop in concessions (down 15.7 ppts to 5.5%), followed by Miami, Florida (-13.1 ppts to 33.8%) and San Antonio, Texas (-10.9 ppts to 44.4%).
Homebuilders' Q1 earnings offered a window into how they're dealing with slower demand. For example, Lennar (LEN) used incentives, including interest rate buydowns, to reconcile home prices to market conditions.
FRANK A. HORNSTEIN
REALTOR
Accredited Staging Professional
McWilliams Ballard Coastal
Call or Text 302-604-4746
Email: frankhornstein1@gmail.com
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