Property Valuation
In New Mexico, 'absorption rate' in a market analysis measures:
AThe rate at which moisture absorbs into adobe walls
BThe pace at which available properties are sold or leased in a defined market during a specific time period✓ Correct
CThe percentage of loans that default in a market
DThe rate of appreciation in a neighborhood
Explanation
Absorption rate = Number of properties sold per month / Total available inventory. It indicates market conditions: a low absorption rate (slow sales) suggests a buyer's market; a high rate suggests a seller's market.
Related New Mexico Property Valuation Questions
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