In a typical seller's market, which of the following is most likely to decline?

In a typical seller's market, where there are more buyers than available homes, the inventory of homes for sale is most likely to decline. This occurs because the heightened demand from buyers often leads to homes being sold quickly, causing the inventory levels to drop. Sellers benefit from this scenario, as they can often sell their homes at higher prices due to the competitive environment among buyers. The limited supply of homes creates a sense of urgency, further depleting the inventory.

In contrast, during a seller's market, one would expect sale prices to rise due to increased competition among buyers, while demand from buyers remains robust. Mortgage rates may fluctuate based on various economic factors, but they are not intrinsically linked to the dynamics of a seller's market—rather, they may influence buyer behavior.