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Absorption Rate? What is this about?
There are some terms that we toss around in the real estate industry as if people knew what we were talking about...  Absorption Rate is one of those terms. 
It isn't complicated, but if you are unfamiliar with the term, if can be confusing.  And unlike "Bacon Double Cheeseburger", it isn't really self explanatory. 
What is Absorption Rate?
There are a couple of components to Absorption Rates. 
Inventory Level Sales Pace over a specified time period How long the inventory would take to be "used up" at the current level and pace... That is it in a nutshell.  But, let's look at a few examples, as well as some caveats.  By the way, this isn't just for real estate, but can apply to anything that might be considered a commodity... 
Let's say that your family eats frozen pizza twice a week, and you have 6 Digiorno's Pizzas in the freezer.  If you don't go to the store to pick up more, and you continue eating them at the same pace, you have a three week supply of frozen pizza. 
Obviously there are a couple of ways that you can alter that situation. 
You can start with more pizza You can alter ... more

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