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In a seller’s market, the sellers are likely to make good, steady profits. There are more buyers contacting them than they’re used to. However, this is bad for buyers because they have more competitors to deal with, and the sales prices will increase. There are obvious signs for real estate buyers and sellers to look out for in a seller’s market.


Human Migrations

There are certain points in time when large influxes of people move from one location to another. A modern example is the large migration of Central Americans into North America, particularly to the U.S. When there are massive waves of migration into specific cities and towns, most people would assume that many of these migrants will become homeowners. They may plan to purchase the home upfront, make an inspection or they plan to rent the home to tenants every month. When a city’s population increases dramatically, there is the assumption that it is a seller’s market.


Prices Increase

When many buyers are asking to see houses, sellers have the advantage of raising the prices beyond the home’s actual value. The highest bidder usually is the winner. Increasing the price allows the seller to choose the most qualified buyers who are most likely to make valid payments and not default on their loans.


Fast Sales

When homes are selling at lightning speed, it’s a sign that many buyers are actively competing with each other. The faster an item sells, the more likely it has been searched for by many people. Many buyers also include serious buyers who have already done their research and will buy the home immediately.


Improving Economy

When a country’s or city’s economy improves, the job growth increases along with the population growth. Workers’ salaries increase as more job opportunities become available. More people are becoming qualified to buy houses as they search through listings and make inquiries to real estate agents.


A seller’s market is not always easy for sellers and not always difficult for buyers. Every market is different, so the key is to let the facts guide one’s decisions. Before buying a home, know the type of market that you’re dealing with and look for good signs that it’s time to buy.