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Investments glossary

Absorption Rate


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Quotes of the day:

a good tooth, gets no gold

— Severin Meiland

The absorption rate in the real estate market is used to evaluate the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the number of homes sold in the allotted time period by the total number of available homes. This equation can also be reversed to identify the amount of time it would take for the supply to be sold.


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