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Cincinnati Real Estate Market News – Week 44

by | Nov 4, 2020 | Market News, Real Estate

New Listings

This Week

537

vs. Last Week

-17.51%

vs. Last Month

-19.25%

vs. Last Year

-8.36%

Closings

This Week

625

vs. Last Week

+31.30%

vs. Last Month

+3.31%

vs. Last Year

-4.43%

Avg. Sale Price

This Week

$267,135

vs. Last Week

+1.96%

vs. Last Month

-1.07%

vs. Last Year

+14.87%

Avg. Days On Market

This Week

19

vs. Last Week

+26.67%

vs. Last Month

0.00%

vs. Last Year

-38.71%

Absorption Rate

This Week

41.01%

vs. Equilibrium

+24.34%

vs. Last Week

+2.79%

vs. Last Month

+3.03%

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.

Although New Listings and Closings are both down vs. last year, it’s encouraging for sellers to see that Closings are down less than New Listings. If this trend continues, inventory will decrease. Also to sellers’ benefit, Avg. Sale Price is up considerably vs. last year, while Avg. Days on Market is down dramatically vs. last year. Unfortunately, this weeks’ data doesn’t provide any good news for buyers. The Absorption Rate reached an all-time high once again, indicating 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 41.01% can also be expressed as a 2.44 months’ supply of homes. This rate is 24.34% 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.