Market data
Absorption
Absorption is the rate at which available properties are sold or leased over a period, signalling how quickly a market is clearing supply.
The absorption rate measures how much of the available inventory is taken up within a given timeframe, and it is often expressed as months of supply, the time it would take to sell current stock at the recent pace. A high absorption rate or low months-of-supply points to strong demand and a seller-favourable market, while the reverse suggests a buyer's market. It is a key indicator for timing launches, pricing, and gauging the health of a specific area or segment.
Related terms
- Transaction — A transaction is a recorded property deal, whose registered price and details form the raw data behind market analysis and comparables.
- Median vs Average — The median is the middle value in a set of prices while the average is the arithmetic mean; the median resists distortion from extreme deals.
- Capital Appreciation — Capital appreciation is the increase in a property's market value over time, realised as profit when it is sold for more than it cost.
- Price per Square Foot — Price per square foot is a property's price divided by its area, used to compare value across units of different sizes.