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Cincinnati Market – June 2020

by | Jul 2, 2020 | Real Estate

New Listings: 3033

vs. last month: +7.78%

vs. last year: -5.54%

Avg. Sale Price: $252,962

vs. last month: +5.48%

vs. last year: +2.87%

Avg. Days On Market: 24.01

vs. last month: -6.50%

vs. last year: -14.65%

Absorption Rate: 27.17%

vs. market equilibrium: +10.50%

vs. last month: +1.49%

(based on data from Cincinnati MLS)

In June 2020, the New Listings figures suggest that sellers who have been waiting on the sidelines during the quarantine have jumped into the market. Although the number of New Listings is still down vs. last year, it’s down by a smaller amount than usual. The remaining figures – Avg. Sale Price, Avg. Days On Market, and Absorption Rate – all tell the same story. Inventory is tight and, as a result, homes are selling more quickly and at higher prices.

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 27.17% can also be expressed as a 3.68 months’ supply of homes. This rate is 10.50% 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.