soft market


Also found in: Dictionary, Thesaurus.
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 ?
The soft market test will provide an opportunity to gain an understanding into the likely level of interest from the market.
Selling property in a soft market can be stressful for homeowners.
Even in a soft market, there has to be a proper level of diligent underwriting.
"There are differing views on how long and deep this pending soft market cycle may last," said Kerr.
Further, Nomura expects that the availability of cheap reinsurance will exacerbate the fight for market share at the primary level, leading to a traditional soft market.
* 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.
The psychology of the preceding soft market played a role in the lates changes, said one executive.
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).
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.
PreProcurement: Integrated community equipment - soft market test
Commercial rates fell in December 2014 -- sending out warning signs for the return of a soft market -- while personal rates moderated during the same period, according to a recent report from MarketScout.