What characterizes a buyers market in real estate?

A buyer's market in real estate is characterized primarily by having more properties available for sale than there are buyers looking to purchase. This imbalance gives buyers increased negotiating power, as they have a wider selection of homes to choose from and can be more selective. In a buyer's market, sellers may need to lower their prices or offer additional incentives to attract buyers, leading to potentially better deals for those looking to purchase real estate.

In contrast, when there are more buyers than properties, it creates a seller's market, where competition among buyers can drive prices up. An equal number of buyers and properties might result in a balanced market, where prices stabilize, but do not necessarily favor either side significantly. High-priced properties alone do not define a buyer's market, as prices could be high in any market condition, regardless of the balance of supply and demand.