Coming off years of bidding wars where potential Boston condo buyers would waive all sorts of contingencies, today’s buyers are actually getting concessions from sellers.
A new Redfin report found Boston condo sellers are starting to give back to buyers concessions including money for repairs and mortgage-rate buydowns. In the fourth quarter of 2022,
The return of concessions comes as homebuyer demand has dampened due to rising mortgage rates, inflation and economic uncertainty, giving buyers in today’s market increased negotiating power. The pandemic had buyers waiving contingencies to win bidding wars when mortgage rates were at a record low from late 2020 through 2021.
Not only were buyers getting contingencies in the last quarter of 2022, but the homes they were buying some are coming at a discount.
The market with the biggest concessions was Phoenix where buyers in 62.9% of home sales received concessions. That’s up 33.2% from last year and is, according to the report, the largest increase of the 25 metros where data was available.
Unfortunately, Boston was at one of the lowest at 17.5%, followed by Philadelphia at 22% and Austin, Texas, at 33.3%.