What term describes a market condition where the number of properties for sale does not meet the demand of buyers?

In a seller's market, the demand for homes exceeds the available supply, which often leads to increased prices and more competitive bidding among buyers. This situation often arises when there are fewer properties on the market compared to the number of interested buyers, giving sellers an advantage in negotiations. In such a market, sellers may receive multiple offers on their properties, and the conditions typically favor those offering the best terms, making it a challenging environment for buyers. Understanding this term is essential for buyers and agents to navigate real estate transactions effectively, as it influences pricing strategies and negotiation tactics.

In contrast, other options describe different market conditions—like a buyer's market, where supply exceeds demand, and a balanced market, where supply and demand are roughly equal. An over-saturated market suggests an excess of properties without adequate buyer interest, which is also not characteristic of a seller's market.