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Cincinnati Real Estate Market News – Week 47, 2020

by | Nov 25, 2020 | Market News, Real Estate

New Listings

This Week

506

vs. Last Week

+4.12%

vs. Last Month

-22.27%

vs. Last Year

+16.06%

Closings

This Week

530

vs. Last Week

+27.10%

vs. Last Month

+11.34%

vs. Last Year

+4.95%

Avg. Sale Price

This Week

$249,496

vs. Last Week

+0.92%

vs. Last Month

-4.77%

vs. Last Year

+7.57%

Avg. Days On Market

This Week

17

vs. Last Week

0.00%

vs. Last Month

+13.33%

vs. Last Year

-43.33%

Absorption Rate

This Week

44.09%

vs. Equilibrium

+27.42%

vs. Last Week

+1.86%

vs. Last Month

+5.88%

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 up a little vs. last week, down quite a bit vs. last month, and up considerably vs. last year. Closings are up across the board. Avg. Sale Price is nearly unchanged vs. last week, down a little vs. last month, and up moderately vs. last year. Avg. Days On Market is unchanged 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 6th 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 44.09% can also be expressed as a 2.27 months’ supply of homes. This rate is 27.42% 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.