High mortgage rates and a lack of options in the resale market are forcing sellers to fork out concessions to entice home buyers, according to a new report.
The report by real-estate brokerage Redfin RDFN , which used data submitted by Redfin buyers’ agents nationwide, said that 45.5% of home sales reported over the three months ending Feb. 28 involved a seller giving concessions to buyers.Existing-home sales in January fell for the 12th month in a row, per the National Realtors Association.
“Concessions have become increasingly common because rising mortgage rates and stubbornly high home prices have caused many buyers to put their plans on hold, which has motivated sellers to throw in freebies to attract the buyers who remain,” the report’s authors wrote.
'It's ironic that buyers are 'demanding and selective' when the real estate market seems to be working in their favor.'