If you are either buying or selling a house and plan on using a real estate agent for help, the agent might talk to you about the current real estate market conditions. There are two main terms that are used to distinguish the current market conditions, and one of these is a seller's market. When the real estate market is a seller's market, it will have these characteristics.

The market benefits people selling their homes

When it is a seller's market, the current market conditions benefit people who are selling. This is not the best market for people who are buying homes, though. If you are currently looking for a house to buy, you may want to wait a little while so the market has time to change.

There are fewer homes for sale and more buyers out looking

During a seller's market, one of the key characteristics is that there are fewer homes for sale. When there are fewer homes for sale, several different things will happen, and these things all benefit the sellers of homes. One thing that happens when there are few homes for sale is there are usually a lot of buyers out looking for homes to buy. This means that the demand for homes is greater, but the supply of homes is fewer.

The prices of homes are driven up

The result of a high demand for homes but very few homes for sale is that the prices of homes will increase. As demand increases and supply decreases, prices tend to go up. This means that if you are shopping for a house during a seller's market, you are likely to pay more for the house than you would have paid if you had purchased a home during a buyer's market. Although by working with a real estate appraiser you might be able to get a better deal. 

Homes will typically sell faster

A second result of this is that the homes that are for sale will typically sell faster. When there are a lot of people wanting to buy homes and few homes for sale, buyers will make offers faster and homes will sell faster. If you are selling your house, this is good news for you, but if you are buying a house, it is not the best market to buy a house in.

If it is currently a seller's market, you should have no problem selling your house if that is your goal. If you are currently looking for a home to buy during a seller's market, you can expect to find fewer homes for sale and higher prices.