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Cincinnati Real Estate Market News – November 2020

by | Dec 8, 2020 | Market News, Real Estate

New Listings

This Month

2055

vs. Last Month

-30.97%

vs. Last Year

+8.27%

Closings

This Month

2144

vs. Last Month

-9.88%

vs. Last Year

+11.55%

Avg. Sale Price

This Month

$250,704

vs. Last Month

-2.49%

vs. Last Year

+9.79%

Avg. Days On Market

This Month

18

vs. Last Month

+5.88%

vs. Last Year

-45.45%

Absorption Rate

This Month

46.59%

vs. Equilibrium

+29.92%

vs. Last Month

+6.75%

This month, New Listings are down significantly vs. last month but up moderately vs. last year. Closings are down nearly 10% vs. last month but up a similar amount vs. last year. Avg. Sale Price is down a little vs. last month but is up nearly 10% vs. last year. Avg. Days On Market is up a little vs. last month but down dramatically vs. last year. The Absorption Rate is at an all-time high again, for the 6th month in a row. 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 46.59% can also be expressed as a 2.15 months’ supply of homes. This rate is 29.92% 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.