reference
glossary.
25 terms
definition
A metric that measures how quickly available properties in a specific market are sold during a given time period, typically expressed in months. It's calculated by dividing the total number of available properties by the average number sold per month. This indicator helps determine whether it's a buyer's or seller's market.
examples
- —With 240 homes for sale and 30 selling per month, the absorption rate is 8 months, indicating a buyer's market.
- —Real estate agents use absorption rates to advise clients on pricing strategies and timing for listing their homes.