Property Valuation
What is the absorption rate in Nevada real estate market analysis?
AThe rate at which water is absorbed by Nevada desert soils
BThe rate at which available properties are sold or leased in a given market in a given time period — used to estimate market supply and demand✓ Correct
CThe rate at which new listings absorb buyer activity
DThe appraisal adjustment rate for absorbed moisture in buildings
Explanation
Absorption rate = number of sales per period / total number of available properties. If 30 homes sell per month and there are 180 on the market, the absorption rate is 6 months (180/30). A lower absorption rate indicates a seller's market; higher indicates a buyer's market. Critical for pricing Nevada properties.
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