Which of the following could indicate a buyer's market?

Which of the following could indicate a buyer's market?

• A. High demand for properties causing prices to rise
• B. Limited inventory resulting in rapid sales
• C. An increase in the number of listings and stable or decreasing prices
• D. Low interest rates attracting more buyers

Answer: (C)

A buyer's market typically arises when there is an increase in the supply of properties available for sale, combined with a lower demand from buyers. This scenario often leads to stable or decreasing property prices, making homes more affordable for buyers. When examining the various factors that indicate a buyer's market, an increase in the number of listings suggests that there are more homes available than there are buyers looking to purchase them. This oversupply helps to create a competitive environment among sellers, often resulting in price reductions as they seek to attract buyers. Thus, seeing stable or decreasing prices alongside an increased number of listings is a strong indication that the market is favoring buyers, making option C the correct choice. In contrast, high demand leading to rising prices (as in the first option) typically signals a seller's market. Limited inventory causing rapid sales (the second option) also suggests increased competition among buyers, reinforcing the strength of a seller's market. Low interest rates attracting more buyers (the fourth option) can lead to increased demand, which theoretically would push the market towards being seller-friendly rather than buyer-friendly.

A buyer's market typically arises when there is an increase in the supply of properties available for sale, combined with a lower demand from buyers. This scenario often leads to stable or decreasing property prices, making homes more affordable for buyers.

When examining the various factors that indicate a buyer's market, an increase in the number of listings suggests that there are more homes available than there are buyers looking to purchase them. This oversupply helps to create a competitive environment among sellers, often resulting in price reductions as they seek to attract buyers. Thus, seeing stable or decreasing prices alongside an increased number of listings is a strong indication that the market is favoring buyers, making option C the correct choice.

In contrast, high demand leading to rising prices (as in the first option) typically signals a seller's market. Limited inventory causing rapid sales (the second option) also suggests increased competition among buyers, reinforcing the strength of a seller's market. Low interest rates attracting more buyers (the fourth option) can lead to increased demand, which theoretically would push the market towards being seller-friendly rather than buyer-friendly.