Which term describes slightly more homes available than buyers in the market?

• A. Demand
• B. Comparable
• C. Balance
• D. Capitalization

Answer: (C)

In a real estate market, balance means supply and demand are in roughly even alignment. When there are slightly more homes available than buyers, the market leans toward balance and becomes mildly buyer-friendly: buyers gain a bit more negotiating power, homes may sit on the market a little longer, and prices can stabilize or rise more slowly. This contrasts with a seller’s market (tight supply, strong demand, rising prices) and a buyer’s market (more supply than demand, prices softer).

The other terms don’t describe this relationship between supply and demand: demand is about buyers’ desire and ability to buy, not the balance of supply; a comparable is a property used for appraisal comparison; capitalization refers to the rate of return on an income-producing property, not market equilibrium.