In real estate, what is a "seller's market"?

A "seller's market" refers specifically to a situation in real estate characterized by a greater number of buyers than there are homes available for sale. This imbalance creates a competitive environment where buyers often bid against one another, sometimes driving prices higher and giving sellers an advantage in negotiations. In such markets, sellers can make their demands more favorable since there is increased demand for their properties, which typically results in quicker sales and potential bidding wars.

The other options do not accurately define the concept of a seller's market. For example, a market with more homes available than buyers generally indicates a buyer's market, where the power shifts toward buyers. Similarly, a market where buyers have strong negotiation power reflects conditions that favor buyers, not sellers. Lastly, while high interest rates can impact the overall market dynamics, they do not define a seller's market, as the key factor defining it is the relationship between supply and demand for homes.