What characterizes a seller's market?

A seller's market is characterized by a lack of available properties relative to buyer demand. In such a scenario, the number of buyers exceeds the number of homes for sale, leading to increased competition among buyers and often resulting in higher prices. When buyers are eager to purchase and there are fewer options available, sellers are in a favorable position to negotiate and may receive multiple offers.

In this environment, properties can sell quickly and often above the asking price, reflecting the dynamics of supply and demand in real estate. Understanding this condition is crucial for real estate professionals and prospective buyers or sellers to navigate the market effectively. Recognizing the features of a seller's market helps predict market trends and informs decision-making in real estate transactions.