What are common characteristics of a buyer's market?

In a buyer’s market, there are distinct characteristics that indicate the dynamics favoring buyers in the real estate market. When there is an abundance of listings available, it signifies a surplus of properties compared to the number of buyers actively looking to purchase. This situation often leads to falling property prices, as sellers may need to reduce their prices to attract potential buyers. Buyers are typically more cautious during this phase, feeling less pressure to make quick decisions, which results in extended decision-making periods. These elements combined create an environment where buyers have the upper hand in negotiations, making it a common definition of a buyer's market.

In contrast, other scenarios such as quick sales with rising prices are more indicative of a seller's market, where competition among buyers is high and inventory is limited. Similarly, increased interest rates leading to fewer sales could imply a tightening market but doesn't reflect the characteristics found in a buyer's market, where buyers have more options and leverage to negotiate better deals.