In a market analysis, what does an absorption analysis focus on?

An absorption analysis in a market study specifically concentrates on the rate at which available properties are sold over a designated period. This analysis provides insights into how quickly properties are being purchased in a particular market, indicating the demand for those properties. A higher absorption rate often signifies a strong demand, whereas a lower rate might suggest a surplus of available properties or reduced consumer interest.

This focus on sales performance helps appraisers determine market trends, assess property values, and make informed decisions about pricing and investments. By understanding absorption rates, appraisers can evaluate whether a particular segment of the market is healthy and what adjustments might be necessary to attract buyers.

In contrast, the other options relate to different aspects of market dynamics. While the quality of properties, the time taken for properties to sell, and the number of new homes built can provide valuable context, they do not specifically measure the direct sales activity that absorption analysis addresses.