The U.S. housing market is giving buyers more negotiating power as sellers increasingly offer financial incentives to close deals. About 45% of homebuyers received seller concessions in August, the highest August share in at least six years, according to Redfin.

Concessions can include closing-cost assistance, home repairs, mortgage-rate buydowns and other incentives that reduce the upfront or monthly cost of buying a home. In several Sun Belt markets, roughly seven in 10 buyers received some form of concession.

The shift reflects a broader change in housing conditions. Inventory has increased across much of the country while mortgage rates remain elevated, making it harder for buyers to afford today's home prices. Sellers are increasingly responding by offering incentives rather than relying solely on price reductions.

For buyers, that can create meaningful savings. A mortgage-rate buydown, for example, can lower monthly payments, while closing-cost assistance reduces the amount of cash needed at closing.

The trend is especially significant because sellers held much more leverage during the pandemic-era housing shortage. Buyers often had to compete against multiple offers with few opportunities to negotiate. Today's market is becoming much more flexible.

Still, concessions are not universal. Highly desirable homes in markets with limited inventory can continue to attract strong demand. But nationally, the growing use of incentives suggests sellers are increasingly having to compete for buyers.

With nearly half of homebuyers receiving concessions, the housing market is showing another clear sign that negotiating power is shifting toward buyers. As long as mortgage rates remain high and inventory continues to build, sellers may have to offer more attractive terms to get deals across the finish line.