What is meant by a "buyer's market" in real estate?

A "buyer's market" in real estate refers to a scenario characterized by an excess of available properties for sale. In this market condition, the supply of homes exceeds the demand from buyers. This imbalance often leads to lower home prices, as sellers may need to compete more aggressively to attract buyers.

When there are more properties on the market than buyers looking to purchase, buyers gain the upper hand in negotiations. They have a wider selection of homes to choose from and might benefit from lower prices, concessions, or incentives from sellers who want to make their property stand out in a competitive landscape.

In contrast, a seller's market would have more buyers than available properties, driving prices up and reducing buyers' negotiating power. Understanding the concept of a buyer's market is crucial for both potential homeowners and real estate professionals, as it influences pricing strategies and market timing.