What is a Buyer's Market?

A buyer's market is when there are more homes for sale than there are buyers. This gives buyers more negotiating power because sellers are more motivated to sell. In a buyer's market, you may be able to get a lower price on a home, or better terms and conditions.

How to know if it's a buyer's market. There are a few ways to tell if it's a buyer's market:

1. Look at the inventory levels.

This is the number of homes that are for sale in your area. If there are more homes for sale than there are buyers, then it's a buyer's market. 

2. Look at the absorption rate

This is the number of months it would take to sell all the homes currently on the market. For example, if there are 100 homes on the market and 10 homes sell each month, then the absorption rate is 10 months. In general, anything over six months is considered a buyer's market. 

3. Look at prices

In a buyer's market, prices are usually lower than in a seller's market because sellers are more motivated to sell. However, this isn't always the case. 

4. Look at days on market

This is how long homes stay on the market before they're sold. In a seller's market, homes will usually sell quickly, so days on the market will be lower than in a buyer's market. 

5. Look at the number of showings per listing

If you're looking at properties that have been on the market for a while and not getting many showings, it could be because there are lots of other properties to choose from, making it a buyer's market. 

A buyer's market can be a great time to buy a property because you may have more negotiating power with sellers who are motivated to sell quickly. To know if it's truly a buyer's market, look at inventory levels, absorption rates, prices, days on market, and showings per listing in your area.