A Record Share of Sellers Offered Concessions in Q4 2022 ldeakins Fri, 01/06/2023 – 10:44
As homebuyer demand wavered in the final quarter of 2022, sellers were forced to make concessions and slash their listing prices
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).
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