What characterizes a seller's market in real estate?

A seller's market in real estate is chiefly characterized by high demand for homes that exceeds the available supply. In such a market, the number of buyers looking for homes outstrips the number of properties available for sale. This imbalance creates a favorable environment for sellers, as they can often command higher prices and may receive multiple offers on their properties.

The dynamics of a seller's market lead to increased competition among buyers, which can drive bidding wars, further elevating home prices and shortening the timeframe that homes remain on the market. Sellers gain leverage in negotiations due to the scarcity of homes.

In contrast to other scenarios, such as a buyer's market where there are more homes available than buyers, or markets where demand and supply are balanced, a seller's market distinctly reflects this heightened demand relative to supply.