What is meant by a sellers' market in real estate?

A sellers' market in real estate refers to a situation where the demand for properties exceeds the supply available. This imbalance typically occurs when there are more buyers looking to purchase homes than there are homes available for sale. As a result, sellers have more leverage in negotiations. They may set higher prices and receive multiple offers, which can lead to bidding wars.

In a sellers' market, it's common to see quicker sales and properties selling for above their asking price due to the competitive nature of the environment. Understanding this market dynamic is crucial for both buyers and sellers; buyers need to be prepared for the competition, while sellers can take advantage of favorable conditions to maximize their profit.

The other options illustrate different market scenarios, such as a buyers' market (where supply exceeds demand) or a balanced market (where supply equals demand), which do not accurately describe the characteristics of a sellers' market.