What defines a seller's market in real estate?

A seller's market in real estate is characterized by a demand that significantly exceeds the number of properties available for sale. This situation often arises when more buyers are looking for homes than there are listings, which puts pressure on prices and can lead to competitive bidding among prospective buyers. In such markets, sellers are in a more favorable position, as they are likely to receive multiple offers or even drive the price above the listing amount due to the high demand and low supply.

In contrast, options relating to a high number of properties for sale or few buyers suggest a market where supply is greater than or equal to demand, indicative of a buyer's market. Similarly, the idea that prices are falling is also not consistent with a seller's market; instead, it typically suggests a situation where the market is soft, further highlighting the imbalance of supply and demand. Thus, the defining characteristic of a seller's market is indeed the overwhelming demand for properties compared to their availability.