What characterizes a seller's market?

A seller's market is characterized by high demand and low supply, which positions sellers in a favorable situation when it comes to negotiations and pricing. In this scenario, there are more buyers looking for homes than there are homes available for sale. This imbalance often leads to competitive bidding situations, where buyers may be willing to offer higher prices or more favorable terms to secure a property. As a result, sellers can command higher prices and may receive multiple offers, potentially driving up the sale price even further.

In contrast, a balanced market would have similar levels of demand and supply, which means that neither buyers nor sellers would have a distinct advantage. A market with high supply and low demand would typically favor buyers because there are more options available and they may negotiate lower prices. Lastly, a stagnating market would suggest no significant changes in either supply or demand, indicating that conditions are neither advantageous nor disadvantageous for either buyers or sellers.