U.S. Home Sellers Increase Concessions Amid Record Prices

U.S. home sellers are increasingly offering concessions to buyers to incentivize sales as high mortgage rates and record home prices strain the market. In August, approximately 45% of sellers offered concessions, such as paying for repairs or buying down mortgage rates, marking the highest proportion for August in at least six years.

Redfin reports that about 20% of active listings have seen price drops, with nearly 16% of sellers combining these cuts with concessions. This shift follows a significant imbalance where sellers outnumber buyers by 58%, while the National Association of Realtors notes that home supply reached a 10-year high in August. The trend is most prominent in Sun Belt cities, specifically Atlanta, Charlotte, and Phoenix.

Market conditions remain difficult for buyers, with Freddie Mac tracking the average 30-year fixed mortgage rate at 6.95%. Due to these pressures, Capital Economics estimates that 2026 will be the weakest year for home sales since 2011.