Humber/Ontario Real Estate Course 3 Exam Practice

A strong seller's market is characterized by a high demand for properties and a low supply of properties for sale. This means that there are more buyers looking for homes than there are properties available for purchase. As a result, sellers have the upper hand and can set higher listing prices. This often leads to bidding wars, which means that buyers are competing against each other, driving up the sale price of the property. In contrast, a stable market typically has an equal balance between buyers and properties available, resulting in market prices that are more predictable and less likely to exceed the asking price. Options A and C are incorrect because they describe a buyer's market, where there are more properties available than there are interested buyers, making it easier for buyers to negotiate prices. Option D is incorrect because a stable market does not indicate a strong seller's market, as there is not enough demand to drive up prices.