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Cincinnati Real Estate Market – October 2020

by | Nov 2, 2020 | Market News, Real Estate

New Listings

This Month

2977

vs. Last Month

+3.84%

vs. Last Year

+9.45%

Closings

This Month

2379

vs. Last Month

-3.68%

vs. Last Year

+4.80%

Avg. Sale Price

This Month

$257,102

vs. Last Month

+0.80%

vs. Last Year

+15.68%

Avg. Days On Market

This Month

17

vs. Last Month

0.00%

vs. Last Year

-39.29%

Absorption Rate

This Month

39.84%

vs. Equilibrium

+23.17%

vs. Last Month

+2.19%

This month, New Listings are up vs. last month and vs. last year. Closings are down slightly vs. last month but up a similar amount vs. last year. Avg. Sale Price is virtually unchanged vs. last month but is up big vs. last year. Avg. Days On Market is literally unchanged vs. last month but down dramatically vs. last year. The Absorption Rate is at an all-time high again, for the 5th 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 39.84% can also be expressed as a 2.51 months’ supply of homes. This rate is 23.17% 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.