Property Valuation
A Florida appraiser notes that the 'absorption rate' for single-family homes in a neighborhood is 6 months. This means:
AHomes have been on the market for 6 months
BAt the current sales pace, it would take 6 months to sell all current inventory✓ Correct
CValues are increasing at 6% per month
DNew construction is adding 6% to the housing supply monthly
Explanation
The absorption rate is the rate at which available homes are selling in a specific market. A 6-month supply means that at the current pace of sales, it would take 6 months to sell all currently available listings — typically considered a balanced market.
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