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Anderson Twp Real Estate Market – Week 25

by | Jun 24, 2020 | Market News, Real Estate

New Listings: 22

vs. last week: +69.23%

vs. last month: -8.33%

vs. last year: -15.38%

Avg. Sale Price: $289,972

vs. last week: -16.44%

vs. last month: -14.65%

vs. last year: -1.67%

Avg. Days On Market: 16

vs. last week: +15.69%

vs. last month: -46.07%

vs. last year: -30.04%

Absorption Rate: 27.16%

vs. market equilibrium: +10.49%

vs. last week: +1.58%

(based on data from Cincinnati MLS)

Weekly figures are not the best measure of market conditions, because they only measure 7 days at a time. However, they do indicate market direction and fluctuation.

This week, the key take-away is the increase in the Absorption Rate. Although a 1.58% increase vs. last week may not seem like much, it is an indication that a tight market (short supply) has gotten even tighter in the past week.

The absorption rate is a lesser known figure to the general public, but it may be the most important one. It factors in active & pending listings (current inventory), along with the average number of listings sold per month over the past 6 months. The resulting figure is the percentage of current inventory sold each month. Our current absorption rate of 27.16% can also be expressed as a 3.69 months’ supply of homes. This rate is 10.49% higher than the market equilibrium rate of 16.67%, or a 6 months’ supply of homes. When the absorption rate is higher than 16.67%, the market conditions favor sellers. When it’s lower than 16.67%, buyers have the upper hand.