What is a buyer's market and how does it affect value?

In a buyer's market, the supply of homes exceeds demand. This shifts the advantage to buyers, who have more options and less competition. Homes sit on the market longer, often for months instead of weeks. Sellers are more likely to reduce prices, offer concessions, and accept offers with contingencies. Buyers can negotiate more aggressively on price and terms. In a buyer's market, home values typically appreciate more slowly, stabilize, or in some cases decline slightly. The severity depends on how much supply exceeds demand. A balanced market usually has about five to six months of inventory. In a buyer's market, inventory exceeds six months. Buyer's markets are often caused by higher interest rates, economic downturns, oversupply from new construction, or population decline. They can be local rather than national. While South Jersey has been in a seller's market in recent years, individual towns and price points can experience different conditions. Even in a strong overall market, overpriced homes effectively operate in their own buyer's market.