The supply of homes on the market exceeds the demands or number of buyers.
Characteristics: High inventory of homes; few buyers compared to availability; homes will be on the market for a longer period of time; prices are usually falling.
The number of buyers wanting homes exceeds the supply or number of homes on the market.
Characteristics: Minimal inventory of homes; many buyers in the marketplace; homes sell quickly; prices usually increase.
The number of homes on the market is equal to the demand or number of buyers.
Characteristics: Demand equals supply; sellers accept reasonable offers; houses sell within a reasonable amount of time; prices are generally stable.