- Nearly half of U.S. home sellers gave concessions to buyers in May, the greatest May share in our records
- Concessions were most typical in Nashville, the country’s strongest purchaser’s market, where three-quarters of sellers distributed concessions to draw in buyers.
- They were least common in the Bay Location and other markets that are tilting towards sellers.
- 16% of Might’s home sales had both a concession and a rate drop, also the highest Might share on record.
Home sellers offered concessions to buyers in 46.2% of U.S. home sales in Might, up from 43.1% a year earlier and the greatest share for that month in our records.
This is based upon an analysis of data submitted by Redfin buyers’representatives throughout the nation, covering rolling three-month durations from 2019 to present. Might refers to the 3 months ending May 31, 2026. The data is seasonally changed. A concession is tape-recorded when an agent reports a seller offered something that helped in reducing the buyer’s total cost of acquiring the home. That might consist of money towards repair work, closing expenses and/or mortgage-rate buydowns. It does not include situations in which the seller lowered the sale price of their home or reduced the rate due to a negotiation with a purchaser.
Seller concessions are at a record high for spring since it’s a buyer’s market, with 47% more home sellers than purchasers in the U.S. Home mortgage rates and home prices are still traditionally high, and lots of potential property buyers are retreating due to prevalent financial uncertainty stemming from the effects of the Iran war, inflation jitters and nerves about task security. Due to the fact that demand has been lukewarm, listings have actually accumulated, causing sellers to turn to concessions as they contend for purchasers.
“There are two main factors concessions are so common: Purchasers have leverage, and some sellers are pricing too high,” stated Amanda Peterson, a Redfin Premier representative in Dallas. “With more stock and less competition, purchasers can be selective and work out for everything from repair work to closing costs. Sellers– specifically those with dated homes that have not been refurbished in decades– are increasingly willing to make concessions because they can be the difference in between securing a purchaser and leaving their listing sitting on the marketplace. Some sellers are stuck in the frame of mind of the 2021 market, when they had the utilize; those sellers are often pricing expensive, making concessions much more essential to close a deal.”
75% of Nashville Home Sellers Are Providing Concessions to Buyers
Seller concessions are much more common in the Sun Belt than other parts of the country.
Nashville home sellers provided concessions to buyers in three-quarters (75.5%) of homebuying deals in Might, the highest share among the 28 major U.S. cities included in this analysis.
Next are Charlotte, NC, where 71.4% of sellers provided concessions to purchasers, Atlanta (68.7%), Phoenix (65.6%) and Raleigh, NC (64.1%).
Concessions are more typical in those locations since they’re strong buyer’s markets. Nashville was May’s biggest buyer’s market, with more than two times as numerous sellers as buyers. That inspires sellers to offer concessions to bring in buyers, and to get offers across the goal.
All of these markets saw huge need during the pandemic homebuying boom, but have actually because done an about-face, offering buyers a lot more take advantage of. Lots of Sun Belt metros developed homes aggressively to meet pandemic-era demand, and now they have a big supply of listings piled up. At the very same time, rising home costs and home mortgage rates have actually dampened homebuying need. One other fact is magnifying climate threats, which have actually risen property owners’ insurance costs and HOA fees in a lot of those places.
The outcome: Purchasers have more alternatives, so sellers require to complete hard and deal concessions– like covering closing costs or paying for repairs or upgrades– to sweeten the deal.
The concession rate increased most in Orlando, where 58.6% of home sellers provided buyers concessions in Might, up from 38.3% a year earlier.
The next-biggest boosts remained in Phoenix (65.6%, up from 50.7%), and Nashville (75.5%, up from 61.8%). Those locations are likewise among the places where sellers are most frequently offering concessions to purchasers.
Simply 3% of New York Home Sellers Are Handing Out Concessions
Concessions were least typical in New york city, where just 2.9% of home sellers gave concessions to buyers in May, the most affordable share in the U.S. Next come two Bay Area metros: San Jose (5.9%) and San Francisco (14.9%), followed by Boston (26.7%) and Chicago (27.5%).
The real estate market is various in those metro locations than it is in the Sun Belt, in that sellers aren’t generally completing for purchasers. San Francisco is among just 7 seller’s markets in the country; it’s most likely that purchasers are the ones contending to win homes, meaning they don’t have much take advantage of to get concessions. New York City, Boston and Chicago are all well balanced markets.
The concession rate declined in 11 of the 28 markets in this analysis. It ticked down most in Seattle, where 48.8% of sellers offered concessions in May, below approximately 66% a year earlier. That huge decrease is explained mostly by a base result: Seattle had the greatest share of concessions a year earlier, so it had the most space to fall. Additionally, Seattle has a near-record share of homes selling below their initial asking cost, suggesting buyers are still getting discount rates, just not necessarily from concessions.
The next-biggest decreases were in San Diego (62.3% of home sellers gave purchasers concessions, down from 68.3%) and San Jose, CA (5.9%, below 11.6%).
1 in 7 Home Sellers Are Providing Concessions and Cutting Rates
Some U.S. sellers are giving concessions to buyers and getting a lower cost than they wanted for their homes.
Approximately among every seven homes (15.7%) that sold in Might across the country had a rate drop in addition to a concession. That’s up from 12.8% a year earlier and the greatest May share on record– a similar story to concessions alone.
Metro-Level Summary: Seller Concessions to Purchasers, May 2026
This table consists of the 28 U.S. city areas for which we have enough data on seller concessions, for the 3 months ending May 2026