A buyer's market refers to the overall state of a local real estate market and is used when supply exceeds demand, meaning the market favors buyers. A six month supply of inventory is considered a balanced market, meaning the available inventory of homes for sale can be expected to sell within the next six months, assuming no new homes are added. If the inventory is greater than six months, a market is referred to as a buyer's market. This is a snapshot in time and is always fluctuating. Market conditions are usually evaluated on a monthly basis and are tracked to communicate the overall state of a local market.