In a "seller's market," what is the primary condition?

In a "seller's market," the primary condition is where demand exceeds supply, which favors sellers. This scenario occurs when there are more buyers looking for homes than there are available properties for sale. As a result, sellers have the upper hand in negotiations, as they can set higher prices and may receive multiple offers.

In such a market, properties tend to sell quickly, and bidding wars can ensue, pushing home prices even higher. This dynamic often leads to a sense of urgency among buyers, encouraging them to act swiftly to secure a property before someone else does.

Understanding this concept is crucial for anyone involved in real estate, as it impacts pricing strategies, offer instructions, and overall market forecasts. Thus, recognizing the signs of a seller's market helps buyers and Realtors navigate this competitive landscape effectively.