Amid a slowdown in the US housing market and high mortgage rates, sellers are offering more concessions and freebies to entice buyers. According to Redfin data, 35% of home sales in the three months ending in October involved sellers giving concessions, up from 27.6% in the same period last year.
Redfin Premier agent David Palmer explained that sellers are increasingly willing to offer concessions such as cash for repairs and mortgage-rate buydowns to close deals quickly, especially when facing major life events like divorces and new jobs.
The housing market was hit hard by mortgage rates reaching 23-year highs in October, causing prospective buyers to back out of more sales. In September, 16.3% of home sale agreements were canceled, the highest rate since October of last year.
Buyers have become pickier, wanting to ensure they find the right home, especially given the high cost of buying a home. This has led to listings spending a median of 50 days on the market in October, the longest in about seven months.
However, since October, bond yields have dropped, leading to a decrease in mortgage rates and an increase in purchase and refinancing activity, signaling a potential thaw in the housing market.
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