What is a buyer's market?

A buyer's market refers to a situation in real estate where the supply of available properties exceeds the demand from buyers. In this scenario, there are more homes for sale than there are potential buyers looking to purchase them. As a result of this imbalance, buyers have more negotiating power, which often leads to lower prices and more favorable terms for them.

Because there is a surplus of homes, sellers may need to reduce their asking prices in order to attract buyers, which can lead to increased price competition among sellers. This dynamic creates an environment favorable to buyers, who may have a wider selection of properties and more options for negotiations.

In contrast, other market conditions, such as a seller's market, occur when demand exceeds supply, often driving prices upward and limiting choices for buyers.