Property Valuation
What is 'absorption rate' in Idaho real estate market analysis?
AThe rate at which properties appreciate
BThe rate at which available homes are sold or leased in a specific market area over a given period✓ Correct
CThe percentage of listings that expire unsold
DThe rate of property tax collection
Explanation
Absorption rate measures how quickly properties are being sold or leased — the number of units sold per month divided by total available supply. A high absorption rate indicates strong demand; a low rate indicates oversupply.
Related Idaho Property Valuation Questions
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- A comparable sale in Idaho sold for $310,000 six months ago. The market has appreciated 2% since then. What time adjustment is added to the comparable?
- Which of the following would be considered a physical characteristic affecting property value?
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