When the real estate industry is said to be in a seller’s market, generally home prices are higher, homes are sold fast, there is more money for mortgages, more investors are buying homes, and there are many new homes being built. Homes bought in a buyer’s market can be sold for huge profit in a seller’s market.
In a seller’s market, buyers sometimes need to offer more than the asking price in order to make that purchase. It is not unusual for a house to be listed on the market and within just a few hours be sold to a buyer who was waiting with a full price offer. Buyers do not have the luxury of comparing several houses they are interested in, but need to jump on the first one they find that they like.