London Daily

Focus on the big picture.
Sunday, Jun 01, 2025

Desperate US home sellers are basically paying buyers to purchase their homes

Desperate US home sellers are basically paying buyers to purchase their homes

Sellers want to off-load properties so badly that they're paying down buyers' mortgage rates and offering money for repairs at record levels.

Sales of previously owned homes have fallen for 10 consecutive months. It's making some home sellers so desperate they're offering buyers cash to purchase their properties. 

It all comes down to the Federal Reserve's ongoing fight against surging inflation, which has effectively put an end to pandemic-era mortgage deals. With higher monthly mortgage payments and near-record-high home prices, fewer Americans are purchasing homes. And in a stark contrast to the housing market of 2020, sellers are losing their grip on the US real-estate market — and it's costing them big. 

Indeed, data from the real-estate brokerage Redfin indicated that in the fourth quarter of 2022, home sellers gave concessions — such as money for home repairs and mortgage-rate buydowns, a technique where a seller pays a fee at closing to secure a lower mortgage rate for a buyer — to buyers in 41.9% of home sales. 

That's the highest rate Redfin has ever recorded over a three-month period.

"Buyers are asking sellers for things that were unheard of during the past few years," Van Welborn, a Redfin real-estate agent based in Phoenix, said in the report. "They're feeling empowered, partly because their offer is often the only one, and partly because they know sellers have built up so much equity during the pandemic that they can afford to dole out sizable concessions."

With fewer deals taking place, home prices are falling in cities across the country — even in previously hot markets like Austin and Phoenix. It's causing some homeowners to do whatever they can to sell their homes quickly.


Buyers are seeing more discounts and reclaiming their power


Buyers are also receiving more price cuts. According to Redfin, a record 22% of home sales Redfin agents made in the fourth quarter of 2022 included both a concession and a final-sale deduction. Additionally, a record 19% included both a concession and a listing-price cut while the home was still on the market, and a record 11% included all three incentives.

Brian Lewis, a housing expert and broker with the real-estate firm Compass, said that in cities like Los Angeles and Chicago a, general lack of homes for sale is also helping shift the market in favor of buyers. 

"Here's the thing about America, we don't have inventory," Lewis said in an interview on Fox on Thursday. "In New York City, it's tight. In Richmond, Virginia, it's tight. In some areas of Chicago, it's tight. My Los Angeles offices are saying that it's tight out there, too." 

When home prices and mortgage rates are both high, buyers are reluctant to dive in. That means sellers need to compete for the few that are willing to make offers under such conditions. Lewis said these dynamics have made it unmistakable that "homebuyers have way more power" than sellers. 

"It took a while, but seller expectations are coming back down to earth," Welborn said. "Sellers realize they're not going to get $80,000 over the asking price like their neighbor did last year."

Comments

Oh ya 2 year ago
Its not just housing crashing it is everything, car sales and thousands losing their jobs. It is a recession or worse a depression that is happening. 250.000 people who bought homes last year are now underwater on the mortgage. Get out of debt and stock up on food because the prices are raising quickly

Newsletter

Related Articles

0:00
0:00
Close
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
×