What factor contributes to a buyer’s market?

A buyer's market occurs when the supply of homes for sale exceeds the demand from buyers, enabling buyers to have more choices and potentially negotiate better prices. High levels of inventory imply that there are more properties available on the market than there are buyers seeking to purchase them. This surplus creates a competitive environment where sellers may need to lower their prices or offer incentives to attract buyers, thereby establishing favorable conditions for those looking to purchase a home.

In contrast, factors such as increased buyer confidence, promotion of new construction, and low mortgage rates can lead to a seller's market by stimulating demand or driving up home prices. These elements tend to enhance buyer activity and competition among buyers, making it less favorable for those looking to negotiate a good deal. Thus, high levels of inventory are the primary driver that contributes to a buyer's market.