How is a buyer's market defined in relation to a seller's market?

A buyer's market is characterized by an abundance of available properties for sale and relatively few buyers actively looking to purchase. In contrast, a seller's market has a limited number of properties available and a higher demand from buyers. This distinction is crucial in real estate as it reflects the balance of supply and demand in the market.

When there are many sellers and few buyers, it typically leads to increased competition among sellers, which can drive prices down and give buyers greater negotiating power. In these scenarios, buyers may find more options and potentially lower prices for the properties they are interested in purchasing. Conversely, in a seller's market, sellers can command higher prices due to the scarcity of available homes and the greater number of buyers vying for those properties.

Understanding these market dynamics helps buyers and sellers navigate their transactions more effectively, allowing them to make informed decisions based on current conditions.