What is a "buyer's market"?

A "buyer's market" occurs when there are more properties available than there are buyers actively seeking to purchase them. This imbalance leads to increased competition among sellers, which typically results in lower prices for the properties available. Sellers may need to offer incentives or negotiate more favorably to attract buyers since the excess supply gives buyers the advantage in negotiations.

In such a market condition, buyers have a greater selection of homes and may feel more empowered to negotiate prices or terms that align with their needs. This contrasts with a seller's market, where demand exceeds supply, often leading to higher prices and less favorable conditions for buyers.

Understanding this dynamic is essential for real estate professionals, as it directly affects marketing strategies, pricing strategies, and negotiation tactics. In a buyer’s market, savvy buyers can take their time to find a property that meets their needs without feeling rushed due to competition from other buyers.