A Buyer’s Market is one where the supply of homes on the market exceeds demand from buyers. Pricing trends downwards and is more attractive for buyers. The opposite of a buyer’s market is a seller’s market where buyer demand is greater than housing supply and prices trend upwards.
A buyer’s market is usually determined by the absorption rate of homes in a particular area. When the absorption rate is 20% or lower, homes are selling slowly and months of supply is high, favoring home buyers.