Soaring mortgage rates paired with high inflation and economic uncertainty have eroded buyer demand over the last several months, and with less competition comes more negotiating power for those still actively searching for homes in the for-sale market. As a result, sellers gave concessions to buyers in 41.9% of all home sales in the fourth quarter of 2022, the highest quarterly share on record, according to Forbes.
A record 22% of Q4 home sales recorded by Redfin buyers’ agents included a concession as well as a final sale price below the listing price, and a record 19% of home sales included a concession and a listing-price cut while the home was still on the market.
In Phoenix, sellers gave concessions to buyers in 62.9% of home sales in the fourth quarter, up from 33.2% a year earlier. That 29.7-percentage-point increase is the largest among the 25 metropolitan areas for which data was available. Next came Seattle (25.6 percentage-points), Las Vegas (22.2 percentage-points), San Diego (20.7 percentage-points) and Detroit (20.4 percentage-points).
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development