The trend is concentrated in markets that surged during the pandemic homebuying boom
Home sellers are handing out more concessions than ever to attract buyers, with new data from Redfin showing the trend hit a fresh May peak in a market shaped by elevated mortgage rates and restrained demand.
Seller concessions — credits or payments that sellers extend to buyers to cover closing costs, fund mortgage rate buydowns, or address repair needs — occurred in 46.2% of all US home sales in May 2026, up from 43.1% a year earlier and the highest May share in Redfin's records.
The driver is a widening supply-demand gap: there are roughly 47% more home sellers than buyers nationally, a condition that has pushed sellers outnumbering buyers across 35 of the 50 largest US metros and handed buyers significant negotiating power.
Sun Belt sellers feeling the most pressure
The trend is concentrated in markets that surged during the pandemic homebuying boom. Nashville, TN, led all major metros with 75.5% of sellers giving concessions in May, followed by Charlotte, NC (71.4%), Atlanta (68.7%), Phoenix (65.6%) and Raleigh, NC (64.1%).
These Sun Belt cities built aggressively during peak demand years and are now contending with excess inventory, rising insurance costs, and tepid buyer appetite.
Read more: Pandemic boomtowns now lead the nation in failed home deals
Amanda Peterson, a Redfin Premier agent in Dallas, said the record rate reflects both buyer leverage and seller miscalculation.
"There are two main reasons concessions are so prevalent: Buyers have leverage, and some sellers are pricing too high," Peterson said.
"With more inventory and less competition, buyers can be selective and negotiate for everything from repairs to closing costs. Some sellers are stuck in the mindset of the 2021 market, when they had the leverage; those sellers are often pricing too high, making concessions even more necessary to close a deal."
Concession rates were lowest in New York (2.9%), San Jose (5.9%) and San Francisco (14.9%), markets where inventory remains constrained and sellers retain more control.
What the data means for mortgage brokers
A May 2026 survey by Real Brokerage found that 39% of agents said clients are increasingly requesting seller concessions, an early signal borne out in Redfin's transaction-level data.
Mortgage rates compounded the pressure: Freddie Mac's 30-year fixed averaged 6.53% as of May 28, the highest level since early 2025. Real Brokerage's May 2026 agent survey showing 39% of agents flagging buyer concession requests aligns with Redfin's transaction data as the clearest sign yet that the spring market has decisively shifted.
Read more: New listings drought tests US housing market
Mike Fratantoni, chief economist at the Mortgage Bankers Association (MBA), previously told Mortgage Professional America that "in more and more markets around the country, it's going to be a buyer's market as opposed to a seller's market," a prediction now reflected in the data at scale.
For originators and brokers, concessions are a structuring tool: when sellers cover closing costs or fund rate buydowns, borrowers can redirect savings toward down payments or lock in a lower effective rate.
Meanwhile, 15.7% of May transactions included both a concession and a price reduction, also a May record, up from 12.8% a year ago, suggesting many sellers relisting after withdrawing homes from the market in 2025 have exhausted their other options.
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