A market in which sellers substantially outnumber buyers is characterized by:
Correct Answer
C) Rising inventory and lengthening marketing times
Why this is correct: The question describes a buyer's market, where sellers outnumber buyers. The core concept is that excess supply relative to demand causes inventory (homes for sale) to rise and marketing times (days on market) to lengthen as properties take longer to sell. The original explanation correctly identifies these key indicators. Why the other choices are wrong: "Falling months of supply" indicates a tightening market, the opposite of the described scenario. "Multiple competing offers on most of the listings" describes a seller's market with high demand. "Prices rising above asking" also signals a strong seller's market with bidding wars, not an oversupply of sellers. Exam tip: Remember the four key signs of a buyer's market: inventory up, days on market up, seller concessions up, and sale-to-list price ratio down.
Why This Is the Correct Answer
Why this is correct: The question describes a buyer's market, where sellers outnumber buyers. The core concept is that excess supply relative to demand causes inventory (homes for sale) to rise and marketing times (days on market) to lengthen as properties take longer to sell. The original explanation correctly identifies these key indicators. Why the other choices are wrong: "Falling months of supply" indicates a tightening market, the opposite of the described scenario. "Multiple competing offers on most of the listings" describes a seller's market with high demand. "Prices rising above asking" also signals a strong seller's market with bidding wars, not an oversupply of sellers. Exam tip: Remember the four key signs of a buyer's market: inventory up, days on market up, seller concessions up, and sale-to-list price ratio down.
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