A PRIORI ABANDONMENT ABATEMENT ABSENTEE LANDLORD ABSORPTION RATE ABSTRACT OF TITLE ABSTRACTION METHOD  ACCELERATION CLAUSE ACCELERATED DEPRECIATION ACCEPTANCE ACCESSORY BUILDING ACCRETION ACCRUED INTEREST ACQUISITION ACRE ADJUSTED COST BASE ADMINISTRATOR AD VALOREM ADEQUATE PUBLIC FACILITIES ORDINANCE ADDITIONAL PRINCIPAL PAYMENT AMERICAN SOCIETY OF APPRAISERS  ANNUAL PERCENTAGE RATE (APR)

ABSORPTION RATE

The ABSORPTION RATE rate will give you an indication of how long it takes the average home to sell in your market. To calculate the absorption rate, divide the number of listings in your market by the number of sales during that month.

For example, if your market had 300 home listings last month and 100 sales, the absorption rate is three months. When the absorption rate increases, say to six or 10 months, it means that the existing inventory is taking longer to sell and buyers are getting pickier; then the best-looking and best-priced homes will inevitably sell first.

 

Real Estate and Mortgage Terms

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