Definition
The rate at which available homes are sold in a specific market during a given time period. Think of it as the speed at which the market 'eats' inventory—crucial for determining whether you're in for a feeding frenzy or a slow dining experience.
Example Usage
With an absorption rate of only two months, our market is hotter than a Phoenix sidewalk in July.
Origin
Borrowed from economics and manufacturing terminology in the mid-20th century
Fun Fact
A six-month absorption rate is considered a balanced market—the real estate equivalent of perfectly cooked porridge.
Source: Common real estate market analysis terminology
Related Terms
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See “absorption rate” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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