Nearly half of all sellers are giving concessions to buyers right now

Buying vs Renting

For the first time in three years, a majority of consumers believe buying a home is a better option than renting.

That's significant on its own. But the bigger story is that buyers are gradually accepting today's mortgage-rate reality instead of waiting for yesterday's market to return.

It's taken a long time to get here, but it’s one of the most encouraging signs we've seen this year.

Our job as agents is now to build on that momentum, helping clients move from uncertainty to action.

- David

Sellers are giving concessions at the highest share on record for May

Sellers offered concessions in 46.2% of home sales in May, up from 43.1% a year ago. According to Redfin, that’s the highest May share since they began tracking the data in 2019.

Here’s what’s driving the trend:

• Buyers have more leverage – There are 47% more home sellers than buyers nationwide, giving buyers more room to negotiate repairs, closing costs, mortgage-rate buydowns, and other incentives.

• The Sun Belt is feeling it the most – Nashville topped the list with 75.5% of sellers offering concessions, followed by Charlotte (71.4%), Atlanta (68.7%), Phoenix (65.6%), and Raleigh (64.1%) as inventory remains elevated.

• Seller-friendly markets are a different story – Concessions were rare in New York (2.9%), San Jose (5.9%), and San Francisco (14.9%), where competition remains stronger, and sellers have retained more bargaining power.

• Many sellers are giving twice – About 15.7% of homes sold in May had both a price cut and a seller concession, another record high for the month, underscoring how competitive many local markets have become.

My take

This is another sign the market is rebalancing — but "rebalancing" understates what's happening in places like Nashville, where more than three-quarters of sellers are offering concessions. Well-priced homes in competitive markets are still moving, but across much of the country, buyers have real negotiating power, and they know it. For agents, the takeaway is simple: don't make the asking price the only part of the negotiation. Closing-cost credits, repair credits, and mortgage-rate buydowns are often what get deals across the finish line. And with nearly 1 in 6 sellers both cutting their asking price and offering concessions, agents who know how to structure deals creatively will have a meaningful advantage.

More than half of consumers now say it's better to buy than rent

For the first time in three years, a majority of consumers believe buying a home is a better option than renting. Bank of America's latest homebuyer report found that 53% of consumers think purchasing makes more sense in today's market than renting or moving in with family — that’s a notable psychological shift.

Here are the other key points of the report, according to Real Estate News:

• Many buyers are still waiting for lower rates – 71% expect home prices and mortgage rates to fall before buying, down from 75% a year ago.

• Rate lock is easing – More buyers say they'd accept a higher mortgage rate for a better location or a home that better fits their needs.

• Affordability remains the biggest hurdle – High home prices and elevated mortgage rates continue to be the top barriers to buying.

• Higher rates are becoming more acceptable – 44% of buyers would accept a mortgage rate of 6% or higher, while 23% would go to 7% or more.

• Monthly payments remain a challenge – 57% couldn't comfortably afford a $2,000 monthly payment, while 81% say other financial priorities come before homeownership

My take

The headline number is worth bringing up with your clients: majority sentiment has flipped, and that matters. But read the fine print — buyers aren't rushing in yet. The psychological resistance to today's market is slowly breaking down, and that's your opening. Buyers are becoming more negotiable on rate thresholds and more honest with themselves about the tradeoffs of waiting. It’s taken them a long time, but that’s good news. Meet them there and build on that.

Home prices are rising in most major metros

Home-price growth picked up again in May, with U.S. prices rising 0.3% from April on a seasonally adjusted basis—the fastest monthly increase since January. Annual price growth also accelerated to 2.5%, the strongest pace in six months. 

The gains weren't universal, but they were widespread: Home prices increased in 29 of the nation's 50 largest metros.

Here are the metros where prices increased and dropped the most month over month:

My take

One month's price movement rarely tells the whole story. San Francisco posted a 1.3% decline in May, yet it's still up 11.7% over the past year — the largest annual gain of any major metro — driven in part by AI-sector demand. Meanwhile, Texas markets like Austin (-3.8% year over year) and Dallas (-2.2%) continue to cool as inventory has grown faster than demand. That divergence is the real story. For agents, success means helping clients tune out the national headlines, focus on conditions in the neighborhoods where they want to buy or sell, and negotiate the opportunities available today rather than trying to predict where prices will go tomorrow.

Schematics

The news that just missed the cut

• Stop saying “just checking in.” Say this instead.

• How to defend your commission when sellers quote AI

• Serhant is in Texas now

• Ranked: The best real estate virtual assistant companies 

• What agents should do with Google’s new Gemini business tools

Foundation Plans

Advice from David to win the day

In today’s edition, we conclude our two-part mini series highlighting certain skills we think every agent needs to walk into any listing appointment confidently. In addition to the skills we’ve already mentioned, make sure you hone these as well. 

Know the most recent comps – Agents worth their salt MUST know and understand the most recent comparable sales. They should know this material cold before an appointment. This is a surefire way to build confidence with clients and demonstrate that you have your finger on the pulse of your local market.

Communicate what sets you apart – Agents should be prepared to communicate their unique approach to the business. Do you market properties in a unique way? Do you do video content? Do you host more open houses than other agents? Do you have an extensive database of buyers or agents? The more specifically you can list these approaches, the more you will sway clients in their decision-making.

Know your worth and your non-negotiables – Obviously, commission rates are negotiable, but you need to set your limits in advance. Determine your no-go zone before the appointment so you know exactly where you’ll want to draw the line. Think about how you want to present yourself and handle objections you might get from clients. Make sure you know how to defend your commission when sellers quote AI. The more you prepare, the easier it will be to answer these questions. You want to make sure you are entering an arrangement that is worth your time and energy.

We’ve given you the basics, but there is a lot more to know to master your listing pitches. Start here and here to learn more. 

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.” — Warren Buffett

Don’t let events or other people set your agenda. Stay ruthlessly focused on your goals — your time is limited, and you only get one life. Make the most of it. Have a wonderful week.

We’ll see you back here on Friday!

- David