Which market condition is described as favorable to buyers, with many homes for sale and reasonable prices?

• A. Sellers market
• B. Buyers market
• C. Balanced market
• D. Market slowdown

Answer: (B)

The main idea is how supply and demand shape market conditions in real estate. When buyers have the upper hand, it’s because there are more homes available than buyers. This is a buyers market: many homes for sale, giving buyers plenty of choices and more leverage to negotiate price and terms. Prices tend to be more reasonable or even lower, and homes may stay on the market longer as sellers compete for offers. In contrast, a sellers market has limited inventory and strong demand, driving up prices; a balanced market has roughly equal supply and demand, with more neutral price movement; a market slowdown means reduced activity, not necessarily a surplus of homes.