A seller's market is a real estate market in which there are more buyers than sellers. This gives sellers the upper hand in negotiations, as they can often sell their homes for more than the asking price and receive multiple offers. In a seller's market, homes typically sell quickly and there is little inventory available.

A buyer's market is a real estate market in which there are more sellers than buyers. This gives buyers the upper hand in negotiations, as they have more options to choose from and can often negotiate a lower price. In a buyer's market when homes typically stay on the market longer and there is more inventory available.

Here are some of the key differences between a seller's market and a buyer's market:

How to identify a seller's market:

• Low inventory of homes for sale
• Rising home prices
• Homes selling quickly, often above asking price
• Multiple offers on homes

How to identify a buyer's market:

• High inventory of homes for sale
• Falling home prices
• Homes staying on the market for a long time
• Buyers able to negotiate lower prices

Which market is better for buyers and sellers?

For buyers, a buyer's market is generally better, as they have more options to choose from and can often negotiate a lower price. For sellers, a seller's market is generally better, as they can often sell their homes for more than the asking price and receive multiple offers.

However, it is important to note that both buyer's markets and seller's markets can be good for both buyers and sellers, depending on their individual circumstances. For example, a buyer who is pre-approved for a mortgage and is ready to buy a home quickly may be able to get a good deal in a seller's market. And a seller who is willing to negotiate on price and make some repairs to their home may be able to sell their home quickly in a buyer's market.

If you are considering buying or selling a home, it is important to consult with a qualified real estate agent to get the best advice for your specific situation.