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When the real estate market changes from a buyer's market to a seller's market, which of the following results could naturally be expected?

User DonatJ
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1 Answer

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Final answer:

In a seller's market, increased property prices can be expected due to higher demand and lower supply, resulting in less negotiating power for buyers, and homes spending a shorter duration on the market. The option (A) is correct.

Step-by-step explanation:

When the real estate market shifts from a buyer's market to a seller's market, one can naturally expect several changes. Most notably, increased property prices can typically be observed. This is because, in a seller's market, there is usually higher demand for homes than there is supply, giving sellers the advantage in pricing.

On the contrary, buyers have less negotiating power in a seller's market, so 'More negotiating power for buyers' is not expected. Similarly, a seller's market often corresponds with lower inventory levels as fewer homes are available, which negates 'Higher inventory levels'. Lastly, homes tend to spend a shorter time on the market in a seller's environment due to higher demand, so sellers would not experience a 'Longer time on the market'. Consequently, the correct answer would be A) Increased property prices.

User Peterr
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