What is a buyer's market?

A buyer's market is characterized by a situation where supply exceeds demand. In this scenario, there are more properties available for sale than there are buyers looking to purchase those properties. This imbalance creates an environment where buyers have more negotiating power, as sellers may need to lower prices or offer incentives to attract buyers.

In such a market, buyers can take their time in making decisions, often leading to more favorable terms such as lower purchase prices or additional contingencies in the purchase agreements. The abundance of inventory allows buyers to be selective, contributing to their advantage in negotiations.

The other choices presented do not accurately represent a buyer's market. For instance, a situation where buyers are unwilling to purchase properties could relate to various factors but does not specifically define market dynamics. Properties sold at inflated prices typically indicate a seller’s market, where demand exceeds supply. Lastly, low mortgage rates can influence market conditions, but they do not define a buyer's market on their own, as such conditions can still exist in a seller's market scenario. Thus, the accurate definition is tied to the basic principle of supply and demand, solidifying why this choice is correct.