What characterizes a "buyer’s market"?

A "buyer’s market" is characterized by a situation where the supply of available properties exceeds the demand from potential buyers. This situation typically occurs when there is more inventory in the real estate market than there are interested purchasers. In such a market, buyers have increased leverage, as they have more options to choose from and can negotiate better terms, including lower prices or additional concessions from sellers.

The imbalance of supply and demand means that sellers may struggle to sell their properties quickly and may need to lower their prices or offer incentives to attract buyers. This dynamic creates a favorable environment for buyers, as they can take their time to make decisions and potentially drive prices down through negotiations.

Other choices reflect different market conditions: when demand exceeds supply, it creates a seller's market where prices tend to rise; stable prices with no advantage suggest a balanced market; and the mention of auctioning properties does not inherently describe a market status but rather a method of selling. Thus, the identification of a buyer's market as one where supply exceeds demand accurately captures the essence of the market dynamics at play.