buyer's market

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Buyer's market

Market in which the supply exceeds the demand, creating lower prices. Antithesis of seller's market.

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.

buyer's market

a MARKET situation characterized by the temporary excess supply of a GOOD or SERVICE often leading to cutthroat price competition. In such markets BUYERS are advantageously placed to obtain price concessions. Compare SELLER'S MARKET.

buyer's market

a SHORT-RUN market situation in which there is EXCESS SUPPLY of goods or services at current prices, which forces prices down to the advantage of the buyer. Compare SELLER'S MARKET.

buyer's market

A market with more properties for sale than can reasonably be expected to be purchased by the available demand. As a result, sellers will have to compete against each other to attract buyers and will usually do so by lowering prices.

References in periodicals archive ?
"Talents and skills are being diluted in a soft market cycle." As an underwriter in a soft market, "if your approach is purely to write risk, are you going to scrutinize it to the same degree as you would when there's an opportunity in a hard market when you can really expand your portfolio?" Krefta questioned.
Even in a soft market, there has to be a proper level of diligent underwriting.
In turn, buyers during soft markets challenge the sell side by pushing for more coverage, and brokers are resorting to innovative and shrewd strategies to wring more coverage for lower prices.
Risk managers would be wise to transform the soft market savings of today into an advantage for the future.
If you have a deductible or self-insured retention, a soft market often affords a risk manager time to catch his or her breath and review service providers such as third party administrators (TPAs).
It's true that soft markets give buyers a bit of price break.
There's little to be thankful for in this soft market, except maybe for a buyer here and there who benefits, and does so only in the short term.
"The surplus lines market is generally a soft market with spikes in there we call hard markets," he said.
After 30 years as an MGA, Gough has weathered many a soft market. "People talk all the time about the market cycles, and it really depends on where you're located," Gough said.
During hard markets, alternative facilities are more attractive, and during soft markets, their relative economic attractiveness is less.
The five years of double-digit growth insurers enjoyed from 1975 to 1979 triggered a soft market and the industry's worst-ever combined ratio--118%--in 1984.