As the housing market shifts towards a more buyer-friendly environment, home sellers are increasingly providing concessions such as home repairs. This trend is particularly prevalent in the Pacific Northwest and the broader Western United States. A recent analysis by Redfin indicates that nine out of the ten major metropolitan areas where over half of home sellers are offering concessions are located in this region.
In fact, during the first quarter of the year, 44.4% of sellers offered some form of concession. This figure is just shy of the highest recorded level since tracking began in 2019, which was 45.1% in early 2023. This increase in concessions highlights a significant shift in the market dynamics, reflecting sellers’ adaptation to changing buyer sentiments.
According to Redfin’s report, the surge in sellers providing concessions is largely driven by rising housing costs, economic uncertainties that are making buyers apprehensive, and an influx of housing supply reaching a five-year peak. This combination of factors is prompting sellers to enhance their offers and attract potential buyers.
Real estate agents have noted that certain seller categories, particularly condo builders, tend to prefer offering concessions rather than reducing list prices. But what exactly constitutes a concession? Besides home repairs, seller concessions can encompass various offerings such as covering buyers’ closing costs, providing rate buydowns (where sellers pay an upfront fee to temporarily lower buyers’ mortgage rates), or even including new washer and dryer units as part of the deal.
In a recent analysis, Seattle and Portland emerged as the top cities for seller concessions, with 71.3% and 63.9% of sellers, respectively, willing to offer them. The high mortgage rates, coupled with the steep prices of homes and economic uncertainty, are dampening homebuyer demand. As a result, sellers are increasingly looking to sweeten their offers to entice buyers. However, the prevalence of concessions varies significantly across different segments of the housing market.
“It’s quite common to see seller concessions for condos and newly constructed townhomes, yet less frequent for single-family homes unless they have been on the market for an extended period,” stated Stephanie Kastner, a Seattle agent. She also pointed out that condos face tougher selling challenges due to soaring HOA fees and insurance costs, which contribute to the overall market dynamics.
Top 10 Cities Offering the Most Seller Concessions
Here are the major cities that recorded the highest percentage of sellers willing to provide concessions in the first quarter of 2025:
- Seattle: 71.3%
- Portland, Oregon: 63.9%
- Atlanta: 61.5%
- San Diego: 60.7%
- Denver: 59.2%
- Los Angeles: 56.1%
- Sacramento, California: 52.5%
- Las Vegas: 51.9%
- Phoenix: 51.2%
- Riverside, California: 51.2%
Top 10 Cities with the Least Seller Concessions
Conversely, in other metropolitan areas, including some of the largest economic centers, the prevalence of concessions is significantly lower. This may indicate either a limited housing inventory or heightened buyer demand. It could also be a result of sellers and their agents setting more realistic initial list prices.
The following major metros exhibited the lowest percentages of sales that included seller concessions during the first quarter:
- New York: 5.5%
- San Francisco: 14.9%
- San Jose, California: 16.7%
- Boston: 18.7%
- Chicago: 26.4%
- Philadelphia: 27.6%
- Miami: 33.8%
- Tampa, Florida: 33.9%
- Washington: 39.2%
- Baltimore: 41.4%
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