What is a buyer's market?

A market condition which occurs in real estate where more homes are for sale than there are interested buyers.

Market conditions that favor buyers ie there are more sellers than buyers in the market. As a result buyers have ample choice of properties and may negotiate lower prices. Buyers markets may be caused by an economic slump or overbuilding.

A period existing in the real estate market, whereas the number of available homes exceeds the number of buyers actively searching for a home. Such a condition could potentially favor the buyer because home sellers must remain flexible in their pricing and contract requirements in order to compete with the large volume of other home sellers.

A situation, which favors the buyer due to more houses being on the market than the number of interested or able buyers. Motivated sellers then tend to reduce their price.

When the demand for property is less than the supply so advantages shift to the buyer during negotiations.