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Cincinnati Real Estate Market – August 2020

by | Sep 1, 2020 | Market News, Real Estate

New Listings

This Month

2895

vs. Last Month

-7.36%

vs. Last Year

-6.01%

Closings

This Month

2566

vs. Last Month

+1.14%

vs. Last Year

+0.20%

Avg. Sale Price

This Month

$259,015

vs. Last Month

-1.19%

vs. Last Year

+14.52%

Avg. Days On Market

This Month

22.39

vs. Last Month

-11.19%

vs. Last Year

-15.38%

Absorption Rate

This Month

35.09%

vs. Equilibrium

+18.42%

vs. Last Month

+4.50%

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 month, New Listings are down moderately vs. last month and vs. last year. Closings are virtually unchanged vs. last month and vs. last year. Avg. Sale Price is down slightly vs. last month but up significantly vs. last year. Avg. Days On Market is down quite a bit vs. last month and vs. last year. The Absorption Rate is at an all-time high again, as it has been for the past few weeks. Overall, these figures illustrate an extremely tight market, with very low inventory and strong demand. 

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 35.09% can also be expressed as a 2.85 months’ supply of homes. This rate is 18.42% 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.