soft market
Sluggish trading conditions
A soft market is one where supply exceeds demand, giving buyers the advantage.
Prices tend to fall or stagnate, sellers compete more aggressively for fewer customers, and transactions may take longer to complete.
The term applies across sectors—real estate, insurance, commodities, securities—wherever market conditions favor purchasers over vendors.
It's a soft market for commercial real estate right now, so landlords are offering generous concessions.
The opposite is a hard market or seller's market.
Excess beyond demand
- price reductionLowered cost of goods
- slowdownReduction in pace
- stagnationAbsence of flow or progress
- depreciationAsset value reduction over time
cooling off · surplus · inventory · discounts · negotiation · bargaining · motivated seller · undercutting
Catalog of held assets
- price cutsReductions in cost
- motivated sellerVendor eager to close
- price reductionLowered cost of goods
- listingRecorded item in catalog
appraisal · comps · foreclosure · short sale · absorption rate · closing costs · contingencies · bidding
Risk evaluation and acceptance
- premiumsPayments for insurance coverage
- coverageExtent of inclusion
- policiesAdopted courses of action
- claimsStatements of truth
renewals · deductibles · actuaries · risk · liability · reinsurance · brokers · underwriters
oversupply
Excess beyond demand
- price reductionLowered cost of goods
- slowdownReduction in pace
- stagnationAbsence of flow or progress
depreciation · cooling off · surplus · inventory · discounts · negotiation · bargaining · motivated seller · undercutting · deals
inventory
Catalog of held assets
- price cutsReductions in cost
- motivated sellerVendor eager to close
- price reductionLowered cost of goods
listing · appraisal · comps · foreclosure · short sale · absorption rate · closing costs · contingencies · bidding · escrow
underwriting
Risk evaluation and acceptance
claims · renewals · deductibles · actuaries · risk · liability · reinsurance · brokers · underwriters · adjusters