What characterizes a "seller's market"?

A "seller's market" is characterized by a situation in which demand for properties exceeds the available supply, which creates conditions that favor sellers. In this type of market, the competition among buyers often drives prices up, as multiple buyers may bid for the same property. As demand outstrips supply, sellers have the leverage to negotiate terms that are more favorable to them, such as higher prices or fewer concessions.

In contrast, other market conditions described do not represent a seller's market. For example, declining property values typically correlate with a buyer's market, where buyers have the upper hand due to a surplus of properties available for sale and reduced competition. Likewise, a buyer's market is defined by buyers having more negotiating power, which comes into play when supply exceeds demand. Lastly, when properties take longer to sell, it often indicates weaker demand, suggesting a shift toward buyer's market conditions rather than favoring sellers.