Ok, so my players have collected a metric ton of magic and mundane items (well to be honest I didn't check the weight, but it gotta be close :) ) and obviously want to make it to gold now to equip themselves.
So far I was under the impression the Purchase Limit given on the Settlements page is the maximum the town can buy. So a Small Town could buy magic items worth 5000 gp and such.
Now after a player mentioned it and I re-read the rule, it seems to say that the 5000 is only the limit per item, and not the total.
Is that correct? (English isn't my first language, so I sometimes do misunderstand weird sentences)
It seems weird, that they can sell like 10 or 20 items for 5,000 gp EACH, for 50 or 100k, but when they try to sell a single item for 7,000 they can't afford it.
Yes you are correct. And no it doesn't make a lot of sense but if the players have that kind of money that means that they are at least mid level, which means they can teleport to a bigger town, so no real problem here.
Quatar,
Yes, the rules state it is a per item limit. Think of it this way, shops a community of whatever size needs to limit the amount of money they tie up in any one inventory item. It doesn't mean they don't have more funds to spend than the purchase limit, it means that is the most a shop will be willing to spend on one item. If you lock up your funds in an item that costs too much, that may take a long time to sell given the size of the community and possible number of buyers, then it could drive the shopkeeper out of business.
Again, this is simply applying real world logic to the rule set. Taking it a step farther. Real world logic would also dictate that a community would have a maximum amount of liquid assets available, which is the real issue you seem to be coming to terms with. I would say that is totally within the DM's judgement to say when a town is out of liquid assets or available buyers.