What is described as a "Buyer’s Market"?

A "Buyer’s Market" is characterized by a situation where there are more homes available for sale than there are potential buyers in the market. This imbalance creates competitive pricing conditions favoring buyers; with an abundance of available homes, buyers have the leverage to negotiate lower prices and favorable terms.

In such a market, sellers often have to reduce prices or offer incentives to attract buyers, as the surplus of inventory can lead to extended market times and pressure to sell. Thus, the correct understanding of a "Buyer’s Market" hinges on the relationship between supply and demand, where excess availability of homes indicates that the market conditions favor buyers over sellers.

Other options relate to market conditions that either emphasize greater demand than supply or suggest a competitive market environment, which does not align with the features of a "Buyer’s Market."