What is a buyer's market in real estate?

A buyer's market in real estate occurs when there are more sellers than buyers. This imbalance gives buyers an advantage over sellers, as an excess of available properties can lead to increased competition among sellers, which often results in lower prices and more negotiating power for buyers. In such a market, buyers can take their time to evaluate properties without the pressure of multiple offers, and they may be able to negotiate better terms, such as less earnest money or included repairs.

The other options represent scenarios typical of a seller's market or do not accurately describe a buyer's market. For instance, having fewer sellers than buyers indicates a seller’s advantage, and a market characterized by rising prices typically reflects strong demand outpacing supply, also indicative of a seller’s market.