Humber/Ontario Real Estate Course 2 Exam Practice

If the market shows an equal number of buyers and sellers, with stable pricing and demand, how is this market best described?

1. A buyer's market.

2. A seller's market.

3. A balanced market.

4. A weak market.

5. An inflated market.

6. A neutral market.

The correct answer is: A balanced market.

When the market shows an equal number of buyers and sellers, with stable pricing and demand, it is best described as a balanced market. In a balanced market, neither buyers nor sellers have a significant advantage, leading to a fair and stable environment for real estate transactions. Options A and B are not correct because in a buyer's market, there are more properties for sale than there are buyers, giving buyers an advantage, while in a seller's market, the opposite is true with more buyers than properties, giving sellers an advantage. Option D, a weak market, typically refers to a market with low demand, high supply, and decreasing prices. Option E, an inflated market, suggests that prices are higher than justified by economic fundamentals, which is not the case in a balanced market. Option F, a neutral market, does not accurately describe a market with equal numbers of buyers and sellers and stable pricing and demand.