Moneyzine
Contents
/Investment Guides /Seller's Market

Seller's Market

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 21st, 2023
Advertiser Disclosure

Definition

The term seller's market is used to describe a condition whereby demand for an asset exceeds supply, thereby providing sellers with negotiating leverage. While a seller's market can apply to the sale of any asset, it's oftentimes associated with the real estate market.

Explanation

When the demand for goods or services available to the market is in excess of the supply of those same goods and services, the market is said to be a seller's market. A seller's market allows those looking to sell an asset with additional leverage when negotiating price. The reverse of a seller's market is a buyer's market, which is characterized by a surplus of sellers.

The idea of a buyer's or seller's market originates from the law of supply and demand, which states that an overabundance of supply will put downward pressure on price. Conversely, prices will increase when demand outpaces supply. When a real estate market is a seller's market, homes will take a shorter period of time to sell and buyers will typically offer more than the seller's asking price.

Related Terms

carrying charge market, equilibrium price, inverted market, fast market, buyer's market

Explore Investing Further

Related Content

  • Biden Or Trump: Who Is Better For The Economy And Stocks?
    Yup. This is one of those articles. It's an election year, and here in the U.S., we get to decide which old dude who’s been alive long enough to remember when there were only 48 states in the U.S. will be the leader of the free world.
    March 19th, 2024
  • When it comes to strategic business planning, accounting is front and center, shaping the course of action. At least it should be.
    March 14th, 2024
  • DRIP Brokers: Best Brokers for Dividend Investing for April 2024
    Reinvesting dividends could mean compound growth for your portfolio. But reinvesting them manually can be a hassle. This is why you could benefit from a dividend reinvestment plan (DRIP).
    March 12th, 2024
  • How To Invest in Real Estate Without Becoming a Landlord
    We all know that in order to build wealth and prepare for retirement, investing is the key. However, it can be hard to figure out what to invest in and how to put your money to good use. One of the most talked about ways to build wealth is owning property and being a landlord to bring in passive income. But what if you don’t want to do that? You can still invest in real estate!
    March 6th, 2024
  • Investing In Nature: The Closest You'll Get To Your Money Growing On Trees
    ESG (Environmental, Social, and Governance) has become a polluted word for many traders and investors - but that doesn't mean it's going completely away. Nor does that mean you can't profit from nature or sustainable practices. But there are some opportunities in the regenerative ag, conservation, and green real estate spaces.
    February 29th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.