Weeks Supply Given Demand is the Absorption Rate (the number of weeks required to exhaust supply given demand) measured in time. High rates signal excess units of supply relative to demand. Low rates signal the opposite. The Ratio of Supply to Demand measures the number of units of supply relative to the number of closings per month (demand) measured in units. All other things being equal, the smaller this number, the tighter the area market. Green formatting signals relatively tight markets in the area segment. Red formatting flags those areas where supply is too high relative to the current level of demand. This oversupply is usually resolved by price adjustment.
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