What is the term for an overabundance of lower-priced homes with many buyers?

The correct term for an overabundance of lower-priced homes with many buyers is a buyer's market. In a buyer's market, there are more homes available for sale than there are buyers looking to purchase, which often leads to lower prices. This typically occurs when economic conditions make it favorable for buyers, such as lower interest rates or high inventory levels. Buyers in this situation have the advantage, as they can negotiate better terms and prices due to the increased competition among sellers trying to sell their homes.

In contrast, a seller's market would signify that there are more buyers than homes available, driving prices up and giving sellers the upper hand. A neutral market indicates a balance between buyers and sellers where prices remain stable, and in a competitive market, multiple buyers might vie for the same property, often leading to bidding wars and higher sale prices. Understanding these market dynamics is essential for making informed decisions in real estate transactions.