In real estate, what is a "buyer's market"?

A "buyer's market" refers to a scenario in real estate where the supply of properties available for sale exceeds the demand from prospective buyers. This imbalance gives buyers a significant advantage during negotiations, as they can have more choices and leverage to request better prices or terms from sellers. In such a market, sellers may need to lower their prices or make other concessions to attract offers, leading to conditions that favor buyers.

The other choices pertain to different market dynamics. A situation where property values are increasing rapidly typically describes a "seller's market," characterized by high demand and limited supply. When sellers are desperate to sell quickly, it can also indicate a strain in the market but does not encapsulate the broader definition of a buyer's market. Lastly, exceptionally low interest rates influence market conditions and can make buying more attractive, but they do not directly define the buyer's market status itself. Therefore, the definition that highlights the imbalance between supply and demand is the most accurate and relevant.