soft market


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Related to soft market: Negotiated Market, Narrow market

Soft market

A buyer's market in which supply exceeds demand, causing little trading activity and wide bid-ask spreads.

Buyer's Market

A market situation in which lower prices prevail due to excess supply and a shortage of demand. A buyer's market may occur in one particular sector or across the wider economy. For example, if there are 10 houses in a neighborhood and eight of them are up for sale, it is likely that their prices will race toward the bottom. This means that a prospective homebuyer looking in that area will almost certainly find a good deal on a house. See also: Seller's market.

soft market

A securities market having declining prices and little trading.

Soft market.

A soft market, also known as a buyer's market, is one in which there is inactive trading in an individual stock or the market as a whole at current prices.

As a result, a large sell order can easily push the price of the stock or the market down. If investors move in to buy at this lower level, the market is sometimes said to be firming up. Another way to describe a soft market is as one with more supply than demand.

soft market

A real estate market characterized by more sellers or lessors than buyers or tenants.

References in periodicals archive ?
There are differing views on how long and deep this pending soft market cycle may last," said Kerr.
The Situation: Because market prices can swing as much as 50% in hard or soft markets, it's an ideal time for companies to re-evaluate their total cost of risk.
With the soft market, however, with declining or flat brokerage revenues, multiples have declined from three years ago.
This type of analysis can be especially effective in a soft market because insurers are more willing to make changes to plug potential gaps in coverage when they are competing for your business.
For the third time in 20 years, the insurance industry is in a soft market cycle.
To assist us in the decision making process, we are undertaking a Soft Market Test to help inform how the future procurement strategy for the delivery of repairs and maintenance of our built assets will be developed.
We are on a cusp of a soft market," says Richard Kerr, CEO of MarketScout.
At some large captives, it's true that tons of cash and claims still come through their doors, even in this soft market.
As we continue to contemplate when the market will turn, we must consider outside distribution changes that could further prolong the soft market," MarketScout said in a statement accompanying the report.
Risk managers would be wise to transform the soft market savings of today into an advantage for the future.
The presentation is designed to provide TMPAA members with information to help maintain profitability in their program operations during the current soft market cycle.
A traditional soft market is coming as alternative capital-driven pricing pressure in the reinsurance market flows to the primary market, a recent Nomura report contends.