A "Seller's Market" occurs when the demand for homes exceeds the supply available for sale. In this situation, buyers compete for a limited number of properties, often leading to higher prices and quicker sales. Sellers have the advantage, as they can set favorable terms and may receive multiple offers. In a seller's market, factors such as low interest rates and a strong economy can contribute to increased buyer interest. This environment can make it challenging for buyers to find affordable options, as bidding wars may drive prices above the asking amount. Understanding this dynamic is crucial for both buyers and sellers in the real estate market.