What is a "seller’s market"?

A "seller’s market" refers to a market condition where the demand for housing significantly exceeds the available supply. In this scenario, potential buyers are competing for a limited number of homes, which gives sellers a distinct advantage. This situation often leads to higher property prices, multiple offers on homes, and, in some cases, bidding wars. Sellers can negotiate better terms, and homes tend to sell faster under these conditions.

Understanding this concept is crucial in real estate, as it affects how agents and buyers strategize their approaches to transactions. In a seller’s market, buyers may have to act quickly and be prepared to offer more than the asking price to secure a property. This contrasts sharply with other market conditions, where buyers might have more options and leverage negotiations.