What is the difference between a "buyer's market" and a "seller's market"?

What is the difference between a "buyer's market" and a "seller's market"?

John Caliendo (Realtor) gives expert video advice on: What are some of the benefits of owning a home?; What are some of the drawbacks of owning a home? and more...

The difference between a buyers market and a sellers market is all about supply and demand. All about when a market is red hot, and buyers have low interest rates, and they have reason to believe prices are on the rise. This then becomes a seller's market because the buyers have the incentive to get things done. When that is turned around, for example, if there is a negative consumer confidence, if there is some scary news on CNN headline news that's going to drive buyers back out of the market, then suddenly what you have is a buyer's market because the buyers just aren't in the mood to buy, and as a seller, you're looking to work with anybody hoping to produce a reasonable offer.