How is a "buyer’s market" defined?

A "buyer’s market" is defined as a market condition where there are more homes available for sale than there are buyers looking to purchase. This imbalance often leads to lower home prices, as sellers may have to compete more vigorously for the limited number of buyers. In such situations, buyers have the advantage because they can negotiate better deals, often resulting in lower sale prices, credits for repairs, or other favorable terms.

In contrast, scenarios where homes sell quickly or where properties are sold at a premium typically characterize a "seller’s market," which occurs when demand exceeds supply. Low home loan interest rates can influence the overall market dynamics but do not solely define a buyer's market. Understanding these distinctions helps grasp the various phases of real estate markets and equips you to better assist buyers and sellers.