What does the term "buyer's market" refer to?

The term "buyer's market" refers to an economic condition where supply exceeds demand, which creates favorable circumstances for buyers in real estate transactions. In such a market, there are more properties available for sale than there are buyers looking to purchase them. This imbalance allows buyers to have greater negotiating power, as they can choose from a wider selection and often negotiate better terms and prices.

When supply surpasses demand, properties may linger on the market longer, and sellers may be more willing to lower prices or offer incentives to attract buyers. This environment contrasts with a seller's market, where demand outstrips supply, and sellers typically have the advantage.

Understanding this concept is crucial for both buyers and real estate professionals, as awareness of current market conditions can significantly influence pricing strategies, marketing approaches, and negotiation tactics.