Buyer's Market

What does a buyer's market mean?

Updated March 7, 2022

A buyer’s market is exactly what it sounds like: Conditions are such that they put purchasers in the driver’s seat, allowing them to negotiate deals that are to their advantage. (The opposite situation is referred to as a seller’s market.)

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In a buyer’s market, there are more homes for sale than there are people who want to purchase them. This situation can occur for a variety of reasons:

  • A neighborhood can be in a state of change. Sellers, for instance, may be aging out and looking to downsize or retire to areas that cater to seniors.
  • External conditions, such as the economy, the local job market or other financial factors, may be making some locations more desirable than others and motivating sellers to move.
  • The area may be overdeveloped, meaning the population doesn’t support the supply of homes available.

Buyers in such markets generally can take their time about making a decision to purchase—there’s no rush because there are so many properties on the market that if one is sold, there still are many more to choose from.

In a buyer's market, concessions and lowered prices are all within reason. F. Muhammad/Pixabay

Purchasers have the upper hand in buyer’s markets: They can negotiate a price reduction or other concessions, such as requiring the seller to pay part of the closing costs or to make home repairs.

A buyer’s market is characterized by:

  • Large numbers of “for sale” signs
  • Homes staying on the market for a long time
  • A drop in real estate prices

 Buyers can explore these factors either with a local real estate agent or by doing research on online real estate sites such as and