Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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What is typically observed in a strong seller’s market?

Many properties for sale.
Bidding wars and sales above asking prices.
Fewer buyers than properties available.
Stable market prices.

The correct answer is: Bidding wars and sales above asking prices.

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.