Oregon Real Estate Practice Test 2026 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What characterizes a buyer’s market?

Thriving economic conditions with many buyers competing

A market condition where there are more homes for sale than buyers

A buyer's market is characterized by a condition where there are more homes for sale than there are buyers in the market. This excess supply means that buyers have more options and leverage when negotiating prices and terms. Sellers may need to lower their prices or offer incentives to attract buyers because competition is lower.

In contrast, thriving economic conditions with many buyers competing would suggest a seller's market, where demand outstrips supply and prices rise due to competition. Similarly, high demand leading to increased home prices also indicates a seller's market, where buyers are competing for limited inventory. A limited inventory of homes available creates a situation where buyers face stiff competition, further reinforcing conditions seen in a seller's market. Thus, the key feature that defines a buyer's market is the imbalance favoring buyers, exemplified by the availability of more homes than interested buyers.

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High demand leading to increased home prices

Limited inventory of homes available

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