How does a seller's market differ from a buyer's market?

A seller's market occurs when the demand for properties exceeds the available supply. In this scenario, buyers are competing for a limited number of homes, which naturally drives prices up. Sellers benefit because they can often secure a higher price for their property and may receive multiple offers. The competition among buyers can lead to bidding wars, contributing to the escalation of prices.

In contrast, a buyer's market is characterized by an oversupply of homes compared to the number of interested buyers. This situation typically results in lower property prices as sellers may need to reduce their asking prices to attract buyers.

Understanding these market dynamics is crucial for both buyers and sellers. It helps them navigate the real estate landscape according to current economic conditions and market trends. In summary, option C accurately captures the essence of a seller's market—where demand surpasses supply, driving prices upward.