Property Valuation
In a New Mexico buyer's market (high supply, low demand), how would this likely affect property values?
APrices would increase as buyers compete
BPrices would decrease or stagnate due to lack of buyer competition✓ Correct
CPrices would be set by the NMREC
DNo effect on prices
Explanation
In a buyer's market, high inventory gives buyers negotiating leverage, which pushes prices down or causes them to stagnate. Sellers must be more competitive with pricing to attract limited buyers.
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