Seller Concessions Hit Six-Year High as Inventory Rises

The share of US home sellers offering concessions to buyers reached 45% in August. This figure represents the highest proportion for that month in at least the last six years. The trend indicates a clear shift in market power toward buyers.

Redfin data shows that 16% of sellers offered both a price cut and a concession. Approximately 20% of active listings had a price drop, an increase of 0.6 percentage points from the prior year. These adjustments aim to close deals in a high-rate environment.

Inventory Levels Reach Decade Highs

Home inventory in the US rose to a 10-year high in August. The National Association of Realtors reported this increase in available homes for sale. Sellers now outnumber buyers by 58% across the country.

The surplus of inventory gives buyers more options. Many prospective buyers remain sidelined due to elevated prices and interest rates. This imbalance forces sellers to compete more aggressively for attention.

Mortgage Rates Remain Above Six Percent

The average 30-year fixed mortgage rate ticked up to 6.95% in the last week. Freddie Mac data confirms this recent increase. Other national surveys show the rate well above 7%.

High rates continue to suppress buyer demand. Most forecasters expect mortgage rates to remain above the 6% threshold in the near future. This persistence keeps the housing market in a deep freeze.

Regional Variations in Seller Behavior

Concessions are particularly common in the Sun Belt region. Sellers in this area heavily outnumber buyers. Atlanta recorded the highest frequency, with concessions included in 73% of deals last month.

Charlotte and Phoenix followed with around 67% of sales involving concessions. Capital Economics estimates 2026 will be the weakest year for home sales since 2011. The data from GN auto markets/housing: housing prices supports this outlook.