Let’s say there are 10 houses for sale and 10 buyers, which would be a balanced market.
What happens with the #1 house? It gets multiple offers and sells immediately.
What happens to the #2 house? It is now thrust in the #1 position and gets multiple offers and sells.
Why does all this happen? Because everybody wants the nicest house they can get.
This process continues down the line UNLESS new listings come on the market. You can have the #1 house sell and the #2 house still be the second best one IF a fantastic new listing hits the market and assumes the #1 spot.
What about that #10 house? Unless there are far more buyers than sellers, the #10 house will sit there for a longtime. Every buyer has seen it and decided to wait for a better house to hit the market. Sometimes this #10 house can become something like a #2 or #3 house with a price reduction. Price is everything in real estate.
I’ll put this into some real world things you may have seen.
A house you have been following has been on the market for a while. Every other house in it’s price range sold the first day on the market. You wonder why it hasn’t sold. Then all the sudden it gets multiple offers. That is because the houses that were better have sold and now it is the best available house in its price range.
A house you have been following has sat on the market all summer and fall. It’s a house nobody wanted. Much to your surprise, it sells in January. This happened because there are far fewer new listing that time of year and now this house appears to be one of the best. If this house doesn’t sell in the winter, it will sit on the market during the spring/summer/fall again because there will always be a new listing that is better.
The market is all relative to what else is available and it changes daily. As a seller, you want to get your house to be one of the best ones available in it’s price range.