What Is Seller's Market?
A seller's market occurs when buyer demand outpaces available inventory, typically leading to higher prices, faster sales, and less room for buyer negotiation.
Buyer's Market vs. Seller's Market
Supply exceeds demand — buyers have more negotiating leverage, homes sit longer, and price reductions are more common.
Demand exceeds supply — sellers have more leverage, homes sell faster and closer to (or above) asking price, and multiple-offer situations are more common.
Months of housing supply and median days on market are two of the clearest signals for telling which one a given local market is in.
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Related Terms
More Selling Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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