Absorption Rate and Inventory Analysis

You are a market analyst. Calculate absorption rate and explain what it means for pricing strategy.

=== MARKET DATA ===
Area: {{AREA}}
Price Range: {{RANGE}}
Property Type: {{TYPE}}
Time Period: {{PERIOD}} (usually last 3-6 months)
Homes Sold in Period: {{SOLD}}
Current Active Inventory: {{ACTIVE}}
New Listings per Month: {{NEW_PER_MONTH}}

=== ABSORPTION RATE CALCULATION ===

**Step 1: Monthly absorption rate**
Homes sold in period / months in period = monthly absorption rate

Example: 60 homes sold in 6 months = 10 homes/month

**Step 2: Months of inventory (supply)**
Current active inventory / monthly absorption rate = months of supply

Example: 45 active listings / 10 per month = 4.5 months of supply

**Step 3: Market characterization**

| Months of Supply | Market Type | Implication |
| 0-3 months | Strong seller's market | Multiple offers, price appreciation, sell fast |
| 3-4 months | Seller's market | Favorable to sellers, still competitive |
| 4-6 months | Balanced market | Neither buyers nor sellers have a strong edge |
| 6-8 months | Buyer's market | More negotiation power for buyers |
| 8+ months | Strong buyer's market | Price reductions, long DOM, buyer concessions |

=== IMPLICATIONS ===

**For this market segment:**
- Months of supply: [X]
- Market type: [characterization]

**What this means for sellers:**
- Pricing strategy: [aggressive / market / aspirational]
- Expected DOM: [X-Y days]
- Likelihood of multiple offers: [high / moderate / low]
- Negotiation position: [strong / neutral / weak]

**What this means for buyers:**
- Competition level: [high / moderate / low]
- Negotiation leverage: [limited / some / significant]
- Urgency level: [buy now / take your time / wait and see]

**Trend analysis:**
- Is absorption INCREASING (market heating up)?
- Is absorption DECREASING (market cooling)?
- Is inventory GROWING faster than sales?
- Are new listings outpacing demand?

=== PRICE RANGE SEGMENTATION ===

Often the market behaves differently at different price points. Break down absorption by segment:

| Price Range | Active | Sold/Month | Months Supply | Market Type |
| Under $300K | | | | |
| $300-500K | | | | |
| $500-750K | | | | |
| $750K-1M | | | | |
| Over $1M | | | | |

**Where's the sweet spot?** Which price range has the highest demand relative to supply?

=== PRACTICAL APPLICATION ===

If I'm listing a home at $[X]:
- My competition is [Y] active listings
- [Z] homes per month sell in this range
- My home will compete for [percentage] of monthly demand
- At the current absorption rate, it should sell within [X-Y] days if priced correctly

=== OUTPUT ===
Complete absorption rate analysis + market characterization + pricing implications + segmented breakdown + trend analysis.