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Cincinnati Real Estate Market News – Week 46, 2020

by | Nov 18, 2020 | Market News, Real Estate

New Listings

This Week

486

vs. Last Week

-8.82%

vs. Last Month

-27.68%

vs. Last Year

-0.82%

Closings

This Week

417

vs. Last Week

+0.72%

vs. Last Month

-14.90%

vs. Last Year

-8.35%

Avg. Sale Price

This Week

$247,223

vs. Last Week

-5.16%

vs. Last Month

-0.58%

vs. Last Year

+13.40%

Avg. Days On Market

This Week

17

vs. Last Week

-5.56%

vs. Last Month

+21.43%

vs. Last Year

-48.48%

Absorption Rate

This Week

42.23%

vs. Equilibrium

+25.56%

vs. Last Week

+0.63%

vs. Last Month

+4.11%

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 week, New Listings are down across the board, although there is not much change vs. last year. Closings are virtually unchanged vs. last week, with more significant drops vs. last month and vs. last year. Avg. Sale Price is down a little vs. last week and vs. last month, but is still up considerably vs. last year. Avg. Days On Market is down slightly vs. last week, up quite a bit vs. last month, and down dramatically vs. last year. The Absorption Rate reached an all-time high for the 5th week in a row, 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 42.23% can also be expressed as a 2.37 months’ supply of homes. This rate is 25.56% 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.