In a market where buyers outnumber available homes, what market condition is present?

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Multiple Choice

In a market where buyers outnumber available homes, what market condition is present?

Explanation:
When demand outstrips supply, the market is a seller's market. With more buyers than homes, sellers gain leverage: homes tend to sell quickly, often at or above asking price, and bidding wars can occur. Buyers must compete for limited inventory, which pushes prices upward and reduces negotiating power for buyers. If there were more homes than buyers, it would be a buyer's market—prices would generally ease as sellers compete, and buyers would have more negotiating power. A balanced market happens when the number of buyers and homes is roughly equal, leading to steadier prices and longer but typical time on market.

When demand outstrips supply, the market is a seller's market. With more buyers than homes, sellers gain leverage: homes tend to sell quickly, often at or above asking price, and bidding wars can occur. Buyers must compete for limited inventory, which pushes prices upward and reduces negotiating power for buyers.

If there were more homes than buyers, it would be a buyer's market—prices would generally ease as sellers compete, and buyers would have more negotiating power. A balanced market happens when the number of buyers and homes is roughly equal, leading to steadier prices and longer but typical time on market.

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