Despite seller concessions and buyer down payment assistance, it's not enough for some buyers
House prices are moderating in many markets around the United States, as buyers hold off due to high rates. This is leading sellers to make large concessions to move properties, but one broker said even that is not enough, and it’s opening the door for investors.
On Monday, the National Association of Realtors (NAR) reported the slowest May sales pace in 16 years. Redfin reported that there were almost 500,000 more sellers than buyers in the market.
These factors combine to mean that homebuyers looking to move can find bargains. But because interest rates remain elevated, the deals aren’t quite good enough yet.
Trent Hufstetler (pictured top) is a mortgage advisor and officer at Mpire Financial. He said that despite the majority of homes in his area having seller concessions, buyers aren’t interested.
“The biggest challenge we have right now in the Florida market is free money is not inspiring people to buy houses,” Hufstetler told Mortgage Professional America. “What I mean by that is 67% of transactions, according to an appraisal that I had recently done in a given area, said they had seller concessions on them.”
Houses sitting on the market
Because buyers are hesitant, houses that would have been bought within days just a couple of years ago remain on the market.
“Now we have houses sitting on the market three to six months,” Hufstetler said. “They’re dropping the price. They’re giving max concessions just to sell it. When somebody just has to come to the table with their down payment, and not always because there are programs that provide that down payment, too, people are not motivated.
“They’re not getting off the couch. They’re just saying no. So that’s the biggest challenge is that free money isn’t helping somebody buy a house.”
Lawrence Yun, Chief Economist at the National Association of Realtors, believes a rate decline could trigger a surge in home demand. Even small changes in mortgage rates impact sales, and a 0.5% drop could significantly boost buyer activity. https://t.co/GY1GUmGZzb
— Mortgage Professional America Magazine (@MPAMagazineUS) June 20, 2025
Hufstetler believes so many people have heard that houses are unaffordable, and that’s why they won’t even look at houses now.
“People just need to have something change,” he said. “I think the media has really pumped up that things are unaffordable, which is hard. So, when you’re combating that, and you try to tell people it is a great time to buy. You can’t keep saying it, because you will have a disconnect with your audience.
“I’m always the bright and cheery one. But you can’t always be the optimist, because people are going to be like, ‘Ah, well this guy has no clue what he’s talking about.’”
He wishes he could reach some of the people because many of them should be looking at properties right now instead of waiting for rates to drop.
“There are people who should be buying right now,” Hufstetler said. “But they’re probably hearing it from their uncle. They’re hearing it from the media. They’re talking themselves out of it because of rates. But when rates come down, house prices will probably get that bump up. They’re going to be paying the same anyway.”
Investors stepping in
If residential customers aren’t interested in seller concessions, investors are interested. This has opened up opportunities for Hufstetler, who works in private and non-QM lending.
“The opportunity it creates is that there are plenty of investors,” he said. “They go, ‘Wait a minute. I like this house already. I can put a lower bid on it. Maybe they’ll take that. Oh, and they’re offering concessions. I can still get that on my non-QM DSCR purchase loan. So, I’ll take your free money.’ So that’s where the opportunity is.
“It’s being able to have the flexibility of working in both spaces, which is what I love. I can always find a way to help somebody.”
Some houses in his market still have prices too high for their condition. The inflated prices are keeping both residential and commercial buyers away.
“The only problem we have is the home prices haven’t dropped on certain places,” he said. “There are some houses that (were built) back in the 70s and 80s. They’re not fully remodeled yet, but they’re trying to sell at the top dollar. But they’re not bad enough that somebody could fix them up and make a profit. So, they’re not bad enough for wholesale, and not good enough for retail. That’s why they’re sitting.”
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