Lisa Mailhot | April 21, 2025
Sellers
Home sellers gave concessions to buyers in 44.4% of U.S. home-sale transactions in the first quarter of 2025. That’s an increase from 39.3% this time last year and just below the 45.1% peak seen in early 2023. More sellers are offering concessions as market conditions shift to favor buyers.
What’s behind this shift? For one, housing inventory has surged to a five-year high, giving buyers more options. Combine that with elevated mortgage rates and rising home prices, and it’s easy to see why buyers are hesitant—and why sellers are doing more to close the deal.
A concession might include money toward repairs, closing costs, or mortgage-rate buydowns. Redfin notes that these do not include list price reductions, but rather costs that help reduce the buyer’s total out-of-pocket expenses.
With the economy showing signs of strain, 13% of pending home sales were canceled in March. That means roughly 52,000 home-purchase agreements were scrapped—up slightly from the same time last year and one of the highest cancellation rates since 2017.
Buyers aren’t just looking for cosmetic concessions anymore. “Buyers used to ask for concessions to cover little things like repairs. Now they’re negotiating concessions so they can afford to buy a home,” said Chaley McVay, a Redfin Premier real estate agent. From mortgage-rate buydowns to covering HOA fees, sellers are finding creative ways to meet buyer needs without drastically slashing listing prices.
Seattle tops the charts: 71.3% of home sales in Q1 involved seller concessions—nearly double the 36.4% share from the same time last year. Portland wasn’t far behind at 63.9%, up 14.2 percentage points. These metros are seeing more competition and overpriced listings, prompting sellers to negotiate harder.
“It’s super common to see seller concessions for condos and new-construction townhomes, but less so for single-family homes—unless the single-family home has been sitting on the market for a while,” said Stephanie Kastner, a Redfin agent in Seattle.
Other high-concession metros include Los Angeles (56.1%), Atlanta (61.5%), San Diego (60.7%), and Denver (59.2%). Meanwhile, markets like New York, Miami, and San Antonio saw a notable drop in concession rates, largely because sellers are pricing more realistically from the start.
In a growing number of cases, sellers are not just offering concession—they’re also reducing prices or accepting offers below asking.
Roughly one in five homes (21.5%) that sold in Q1 had a final sale price below the asking price and a concession. And about 1 in 10 (9.9%) involved a trifecta: a price cut, a concession, and a sale below the list price.
This signals a shift in how sellers approach pricing strategy. When homes linger on the market, multiple incentives become the key to getting a deal across the finish line.
Even though Orange County wasn’t explicitly listed among the top or bottom concession markets, these national patterns reflect what we’re starting to see locally. Elevated home prices and increased inventory are giving buyers more leverage—and savvy sellers are adjusting their strategies accordingly.
If you're buying, it’s a good time to negotiate. If you're selling, offering targeted concessions can be the edge you need in a crowded market. At Whitestone Real Estate, we’re constantly tracking the data to help you navigate the best deal—whether you’re listing a coastal gem or shopping for your dream home in South OC.
With concessions near record highs, the 2025 housing market is giving buyers more power—and sellers more incentive to adapt. In Orange County’s ever-evolving real estate scene, understanding these shifts can make or break your next move. If you're thinking about buying or selling in this dynamic environment, I’m here to help you maximize every opportunity. Let’s chat about how to make your real estate goals a reality—on your terms.
Reference: Katz, L. (2025, April 21). 44% of Home Sellers Are Giving Concessions to Buyers—Just Shy of the Highest Level on Record. Redfin.
Learn how the American Dream Accounts Act could help first-time homebuyers save tax-free for a down payment in 2026.
Riverside County is auctioning 946 tax-defaulted properties this April, with bids starting as low as $100 and potential revenue of $29M.
A proposed federal bill aims to ban hedge funds from owning single-family homes. Here's what it could mean for buyers and sellers.
U.S. homeowners now stay put an average of 12 years. California leads the nation, reshaping inventory and opportunity in Orange County.
First-time homebuyers average 35 in 2025. Learn what's driving the shift, how Gen Z and millennials are buying, and what it means for Orange County.
Mortgage rates dropped to their lowest point since 2022, boosting buyer purchasing power and creating real opportunities in the Orange County housing market.
States like Idaho, Connecticut, and Colorado are passing new starter home laws to tackle affordability. Here's what buyers and sellers need to know.
Single Americans face housing struggles at twice the rate of married couples, with nearly two-thirds unable to afford monthly payments. Discover why income gaps, the f… Read more
New bipartisan housing legislation tackles affordability crisis with sweeping reforms to increase supply and expand homeownership opportunities nationwide
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most