Which of the following is most likely true in a seller’s market?

In a seller's market, the demand for homes exceeds the available supply, which creates competitive conditions where multiple buyers are interested in the same properties. This heightened interest leads to multiple offers on homes, often resulting in bidding wars. As buyers compete to secure a property, they may offer prices above the initial listing price. Thus, the likelihood of prices being driven up becomes a characteristic feature of a seller's market, making it advantageous for sellers and challenging for buyers trying to purchase a home.

In contrast, during a seller's market, buyers typically have less leverage to negotiate prices down, inventory levels are not high—often they are low—and home values are more likely to rise rather than decline. This scenario emphasizes why the presence of multiple offers plays a crucial role in driving home prices higher.