Absorption Rate
Also called: months of inventory, market absorption
Absorption rate measures how fast available properties sell in a market, usually expressed as months of inventory. Under roughly six months is conventionally a seller's market and above it a buyer's. It's the cleanest read on local negotiating leverage, and it moves well before prices do — inventory builds for months before asking prices start to fall.
Formula
Months of inventory = Listings available ÷ Sales per month