Alabama Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

Question: 1 / 400

What characterizes a buyer's market?

Surplus of buyers

Surplus of homes

A buyer's market is characterized by a surplus of homes available for purchase. This means that there are more homes for sale compared to the number of potential buyers in the market. This can result in greater bargaining power for buyers and often leads to lower home prices. Option A is incorrect because a surplus of buyers does not necessarily indicate a buyer's market - it could also be a seller's market if there is a high demand for homes. Option C is incorrect because an equal number of buyers and sellers would create a balanced market, not a buyer's market. Option D is incorrect because rapidly increasing home values typically occur in a seller's market where there is high demand and limited supply of homes. Therefore, option B is the only accurate characterization of a buyer's market.

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Equal number of buyers and sellers

Rapidly increasing home values

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