Property Valuation
What is 'absorption rate' in Delaware real estate market analysis?
AThe rate at which properties are converted from residential to commercial use
BThe pace at which available properties are sold or leased in a specific market over a given period✓ Correct
CThe rate at which mortgage funds are drawn from a construction loan
DThe percentage of income a buyer can absorb in housing costs
Explanation
Absorption rate measures how quickly available properties in a given market are sold or leased — typically expressed as units per month. It helps determine whether a market favors buyers or sellers and the months of supply remaining.
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