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Seller's Market

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Watch this quick video to know more about 'Seller's Market.'

Transcript

In the context of real estate, a sellers market is characterized by a shortage of homes. In other words, sellers market is a market characterized by demand exceeding supply. In a sellers market, relative to supply, the demand for homes is high. So, residential property prices are higher. As people spend more on homes in a sellers market, more buyers will compete for homes, driving up prices. The phrase Sellers market indicates that the market condition is ideal for sellers. In a Buyers market, supply of homes exceed demand. Low mortgage rates are a reason that contribute to the existence of sellers markets. When mortgage rates are high, a buyers market is likely to emerge. While pricing your home, it is important to know whether you are in a sellers market or a buyers market. If a seller is not aware that he is in a sellers market, his home will fetch him less than what it deserves.

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