Property Valuation
A Pennsylvania appraiser determines the subject property's neighborhood has an absorption rate of 2 months of supply. This indicates:
AA balanced market with no advantage for buyers or sellers
BA strong seller's market with more buyers than available inventory✓ Correct
CA buyer's market with excess supply
DA neutral market that will not affect value
Explanation
An absorption rate of 2 months means the current inventory would sell in 2 months at current demand rates. Generally: 0–3 months = strong seller's market, 4–6 months = balanced market, 7+ months = buyer's market.
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