Which of the following best describes a buyer's market?

A buyer's market is characterized by a situation where there are more homes available for sale than there are buyers interested in purchasing them. This surplus of inventory gives buyers more options and leverage in negotiations, often leading to lower prices and more favorable terms for the buyer. In such a market dynamic, sellers may need to reduce prices or offer incentives to attract buyers, as the competition for interested purchasers diminishes.

The other options describe different market conditions. A market that favors sellers with increased prices indicates a seller's market, where demand exceeds supply. Equal supply and demand leading to stable prices would represent a balanced market. An increase in new home constructions suggests that more homes are being built, which could influence market conditions but does not specifically define a buyer's market.