With Consumer Confidence and Seller Concessions Both on the Rise, Now’s a Great Time to Buy a House
The Lighter Side of Real Estate • January 22, 2023
People were flocking to buy a house when it was possibly one of the most difficult times in history to do so. Sure, interest rates were super low, but that’s about the only thing buyers had in their favor.
Competition was fierce, since there were so many buyers and not enough houses to satisfy demand, making it almost impossible to get your offer accepted. Prices were going higher and higher. And if you even wanted your offer to get a second glance, you pretty much had to give up your rights to typical inspections. Forget about asking for any concessions from a seller! Yet buyers were still lining up (literally) to buy houses.
Then mortgage rates went up, and many buyers felt like it was an awful time to buy a house. Consumer confidence plummeted to a low of 16% back in October and November of 2022. But, according to this CNBC article, as prices are starting to come down in some areas, consumer confidence is rising and is now up to 21%.
A five percent bump might not seem all that great, but if you’ve been thinking about buying, that could be the sign you’ve been waiting to see in the market.
Not only are lower prices a good reason to buy now, according to this Real Deal article, sellers gave buyers concessions in 41.9 percent of home purchases in the fourth quarter. Just months ago, buyers were regularly waiving their rights to even get an inspection done on the house, let alone hoping to have a seller take care of any repairs. Now, many buyers are getting money toward repairs, closing costs, and even mortgage-rate buy-downs.
Let’s break it down with some bullet points to paint a clear picture of all the combined advantages to buying a house right now:
- Prices are coming down. Prices aren’t necessarily dropping as far down as some buyers might like to see—or in every area—but there is data showing that prices are coming down.
- There’s less competition. While consumer confidence is up, many buyers are still either priced out of the market by higher rates, or just don’t feel like it’s a good time to buy a house.
- Houses are taking longer to sell. You have more time to look at houses and choose one. Mere months ago you almost had to write an offer sight unseen, within hours of a house being listed. It’s less hectic and stressful now.
- Sellers are more likely to negotiate. Combining what sellers are seeing in the news about the market shifting, and then seeing fewer buyers than they may have anticipated coming to see their house, along with it not selling as quickly as they thought it would, sellers are more likely to negotiate.
- Sellers are willing to negotiate on more than just price. As noted above, sellers are not just negotiating on price, they’re also willing to give concessions to buyers in the form of repairs, closing costs, and mortgage-rate buy-downs.
- As consumer confidence rises, so will competition. This is a sweet spot of sorts right now. There are indications that consumer confidence is on the rise, but it’s still low, so there isn’t a significant increase in competition. But as the confidence spreads, more buyers will re-enter the buying pool, increasing your competition. More buyers re-entering the market could also impact how much sellers are willing to (or even need to) bend on price, terms, or concessions.
The Takeaway:
If you’ve been thinking about buying a house, paused your home search, or given up altogether because of the rise in mortgage rates, you might want to consider buying sooner than later.
While rates are certainly higher than the all-time lows they were at just a year ago, many other factors are more favorable for buyers now than they have been in quite some time. There’s less competition from other buyers, sellers are willing to negotiate on price, you don’t have to waive inspections as often, and you stand a good chance at having a seller offer you money for repairs, closing costs, and/or a mortgage-rate buy-down.
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Mortgage Rates Just Saw Their Biggest Drop in a Year You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way. On Friday, September 5 th , the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year. What Sparked the Drop? According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker-than-expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result. Basically, we're seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down. Why Buyers Should Pay Attention Now But this isn’t just about one day of headlines or one report. It’s about what the drop means for you. This recent change saves you money when you buy a home. The chart below shows you an example of what a monthly mortgage payment (principal and interest) would be at 7% (where mortgage rates were in May) versus where rates roughly are now: Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings. How Long Will It Last? That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly. So, make sure you’re connected with a good agent and trusted lender. They’ll keep a close eye on inflation indicators, job market updates, and reactions to upcoming Fed policy to gauge where mortgage rates may go from here. But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says: “Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” And that’s gives you more reason to hope than you've had in quite some time. Bottom Line This is the shift you’ve been waiting for. Mortgage rates just saw their biggest decline in over a year. And if rates stay near this level, it could make a home you couldn’t afford just a few months ago feel possible again. What would today’s rates save you on your future monthly payment? Let’s connect so you can find out.
Should You Still Expect a Bidding War? If you’re still worried about having to deal with a bidding war when you buy a home, you may be able to let some of that fear go. While multiple-offer situations haven’t disappeared entirely, they’re not nearly as common as they used to be. In fact, a recent survey shows agents reported only 1 in 5 homes (20%) nationally received multiple offers in June 2025 . That’s down from nearly 1 in 3 (31%) just a year ago – and dramatically lower than in June 2023 (39%) (see graph below): This trend means you should face less competition when you buy. That gives you more time to make decisions and the ability to negotiate price or terms. It Still Depends on Where You’re Buying Of course, national trends don’t tell the full story. Local dynamics matter, a lot. This second graph uses survey data from John Burns Research & Consulting (JBREC) and Keeping Current Matters (KCM) to break things down by region to prove just how true that is. It shows, while the share of homes getting multiple offers has dropped pretty much everywhere, some areas are still seeing more offers than others: In the Northeast, 34% of homes (roughly 1 in 3) are still receiving multiple offers. That’s more than the national average. But in Southeast , that number drops to just 6%. What’s behind the difference? In general, the areas still seeing bidding wars tend to have lower-than-normal inventory . That imbalance between buyers and available homes keeps pressure on prices and competition. But markets with more listings are seeing conditions cool – and that means fewer bidding wars. Sellers Are More Flexible Than You Might Think Here’s another shift to show you just how much things have changed. According to a Redfin report, almost half of sellers are offering concessions, like covering their buyer’s closing costs or dropping their asking price to get their house sold. That’s a clear sign this isn’t the same ultra-competitive market we saw a few years ago. Back then, sellers rarely compromised. And buyers often waived their inspection or appraisal to try to make their offer stand out. Now, things are different. But again, how often this is happening is going to vary based on where you’re looking to buy. And that’s why you need a local agent’s expertise. Bottom Line If concerns about bidding wars have been holding you back, it may be time to take another look. Nationally, competition is down. In some markets, it’s down significantly. And with more sellers offering concessions, buyers today have more power and flexibility than they’ve had in a long time. Want to find out what the market looks like where you’re buying? Let’s connect.
