buyer's market

noun
Updated on: 13 Oct 2017

Definition of buyer's market

:a market in which goods are plentiful, buyers have a wide range of choice, and prices tend to be low — compare seller's market

First Known Use of buyer's market

1888


Financial Definition of BUYER'S MARKET

buyer's market

What It Is

A buyer's market exists when there are more sellers than buyers in the market for a certain good or service.

How It Works

Housing is a common place to find a buyer's market. Let's say that ABC Town has 100,000 homes and that 3,000 of those homes are for sale. A big manufacturing plant in ABC Town is closing, leaving thousands of people out of jobs. These people want to sell their houses and move to another town with better jobs, and so they put their houses on the market, bringing the number of houses for sale up to 5,000.

Very few people are moving to ABC Town right now (due to its lack of jobs), and the people who already live in ABC Town are not really in a position to buy a new home and move, given the shaky job market there. Accordingly, the few people who are interested in buying a home in ABC Town right now have the upper hand. There are more sellers than buyers, making ABC Town a buyer's market.

Why It Matters

In a buyer's market, a buyer often can acquire goods and services at a lower cost. In our example, a buyer's market means that a lot of sellers are competing for customers, and they are therefore more likely to accept less money for their homes. This can translate into big savings for buyers, who might also be able to dictate other terms of the deal (such as who pays the closing costs).


BUYER'S MARKET Defined for English Language Learners

buyer's market

noun

Definition of buyer's market for English Language Learners

  • : a situation in which many things of the same kind are for sale, prices are low, and buyers have an advantage over sellers


Learn More about buyer's market


Seen and Heard

What made you want to look up buyer's market? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

a blind with adjustable horizontal slats

Get Word of the Day daily email!

Test Your Vocabulary

Find the Cousins

  • a-large-tree-with-many-branches
  • Which pair shares a common word ancestor?
Name That Thing

Test your visual vocabulary with our 10-question challenge!

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!