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Cincinnati Real Estate Market – July 2020

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

New Listings

This Month

3125

vs. Last Month

+3.03%

vs. Last Year

-4.35%

Closings

This Month

2537

vs. Last Month

+0.32%

vs. Last Year

-0.86%

Sales Volume

This Month

$665,029,141

vs. Last Month

+3.71%

vs. Last Year

+7.98%

Avg. Sale Price

This Month

$262,132

vs. Last Month

+3.63%

vs. Last Year

+8.91%

Avg. Days On Market

This Month

25.21

vs. Last Month

+5.00%

vs. Last Year

-2.40%

Absorption Rate

This Month

30.59%

vs. Equilibrium

+13.92%

vs. Last Month

+3.42%

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 up slightly vs. last month but down by about the same amount vs. last year. Closings are virtually unchanged vs. last month and vs. last year, while Sales Volume is up as a result of the increase in Avg. Sale Price. Avg. Days On Market is up vs. last month and down vs. last year, but not significantly. The Absorption Rate has continued to rise to new heights week after week, for the past few weeks. Overall, these figures illustrate a 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 30.59% can also be expressed as a 3.27 months’ supply of homes. This rate is 13.92% 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.