The share of home sellers offering concessions to buyers jumped in the final three months of 2022. Concessions are being offered as an incentive to attract buyers and in an attempt to prevent listing price cuts. Approximately 42% of homes sold in the fourth quarter offered buyer incentives according to Redfin, up from just over 30% in the previous quarter. Concessions included interest rate buy-downs, cash for repairs or closings costs, and home warranties. For homebuyers, concessions partially helped to offset higher borrowing costs due to the rise in mortgage rates. And a record 19% of homes sold by Redfin agents in the fourth quarter included both an offer of a concession and a lowered list price.
