Property Valuation
What is 'absorption rate' in Illinois real estate market analysis?
AThe rate at which insulation absorbs moisture in a building
BThe pace at which available properties are sold or leased in a market during a specific period; used to gauge supply/demand balance✓ Correct
CThe rate at which property values appreciate in a given market
DThe percentage of income absorbed by housing costs for a typical household
Explanation
Absorption rate measures how quickly available inventory (homes for sale, office space, retail space) is being absorbed by the market. Calculated as: units sold per month ÷ total active inventory = months of supply remaining.
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