The inverse between supply and demand in a seller’s market can contribute to a rise in price. However, as buyers aren’t so desperate to purchase a home in just any condition, they will also not pay just any price. Proper pricing of a property is still critical for potential buyers to become actual buyers. Even in a hot market, if a home is over-priced it will sit on the market.
Also, homes must appraise for the asking price for those seeking a mortgage. Pricing is even more important if your property falls into a first-time buyer range as those buyers have stricter boundaries and an increase of a few thousand dollars can price them out.
Yes, it is a seller’s market. However, it is not a market where sellers can capitalize on the low supply levels and determined buyers. In fact, it is a market where sellers can take advantage of demand and having a prime property for sale.