Humber/Ontario Real Estate Course 1 Exam Practice

What is a key characteristic of a buyer’s market?

1. High property prices

2. Low number of available properties

3. Properties sell close to listing price

4. More properties are available than buyers

5. Increasing interest rates

6. Decreasing home sale rates

The correct answer is: More properties are available than buyers

A key characteristic of a buyer's market is that there are more properties available than buyers. In such a market, the supply of homes for sale exceeds the demand, giving buyers an advantage in negotiations and often leading to lower prices. Buyers have more options to choose from, which can lead to competition among sellers to attract buyers. When there are more homes on the market, sellers may need to be more flexible with their pricing and terms to attract offers, as the competition among sellers increases. This abundance of inventory provides buyers with leverage in negotiations, often resulting in deals that favor the buyer. The other aspects mentioned, such as high property prices, low availability, properties selling close to listing price, increasing interest rates, and decreasing home sale rates, typically characterize different market conditions, such as a seller's market or fluctuating markets where demand might drive prices up or make transactions more competitive.