Which condition can significantly hinder real estate transactions?

High property values due to low supply can significantly hinder real estate transactions because it creates a barrier for potential buyers who may find homes unaffordable. When the supply of available properties is low, competition among buyers increases, driving prices up. This elevated pricing may not align with the average buyer's budget, leading to a reduced pool of buyers who are willing or able to engage in a transaction. Consequently, even though seller interest may rise, high prices can deter buyers, ultimately slowing down the market and affecting overall transaction volumes. In a market characterized by high property values stemming from low supply, it may become challenging for sellers to achieve successful sales, as potential buyers may choose to wait for more favorable conditions.