Which scenario is likely to occur in a seller's market?

In a seller's market, demand for properties typically exceeds supply, which leads to heightened competition among buyers. This competition often manifests in bidding wars, where multiple buyers place offers on the same property, driving the price higher than the asking price. This intense demand can create urgency among buyers, as they want to secure a property before others do.

The scenario of buyers facing bidding wars is characteristic of a seller's market, as sellers hold more leverage in negotiations due to the high demand and limited inventory. This contrasts sharply with other scenarios, like low demand for sellers or significant decreases in prices, which are more associated with a buyer's market. Additionally, an increase in inventory is unlikely in a seller's market, as the defining feature of such a market is the scarcity of available homes relative to the number of buyers wanting to purchase them.