Property Valuation
In South Carolina, what does 'absorption rate' measure in real estate market analysis?
AThe rate at which a sponge absorbs water in a moisture test
BThe rate at which available properties are sold or leased in a market over a specified period✓ Correct
CThe rate at which property values increase
DThe percentage of a property's income absorbed by operating expenses
Explanation
Absorption rate measures how quickly available properties are being sold or leased in a given market. It helps determine if a market is a buyer's or seller's market and is useful in appraisal, investment analysis, and development feasibility studies.
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