What is a common characteristic of a seller's market?

In a seller's market, there is typically a high demand for homes which outstrips the available supply. This imbalance leads to increasing home prices as buyers compete for a limited number of properties. Sellers are often able to sell their homes quickly and may receive multiple offers, sometimes above the asking price. The competitive nature of this market encourages buyers to act swiftly, often leading to bidding wars.

The other choices describe characteristics that do not align with a seller's market. When there are more homes available than buyers, it indicates a buyer's market. High inventory levels with slow sales suggest a market where demand is weak, and decreased competition among buyers signifies a surplus of properties relative to the number of interested purchasers, both of which also describe a buyer’s market rather than a seller’s market.