What does the term "seller's market" indicate?

The term "seller's market" refers to a situation where demand for properties exceeds the available supply. In this type of market, potential buyers are often competing for a limited number of homes, which creates upward pressure on prices. As a result, sellers can command higher prices, as buyers may have to bid more aggressively to secure a property. This scenario typically leads to fast sales and often results in multiple offers on a single listing, further driving up the price.

In contrast, a market characterized by supply exceeding demand results in a buyer's market, where sellers may need to lower prices to attract offers. A stable market is one where supply and demand are roughly equal, which creates a more predictable environment for both buyers and sellers, but it does not favor either side. Lastly, low buyer interest indicates a lack of demand, which can lead to lower prices but does not fit the definition of a seller's market. Hence, a seller's market distinctly highlights a scenario of high demand leading to advantageous conditions for sellers.