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Cincinnati Real Estate Market – Week 22

by | Jun 3, 2020 | Market News, Real Estate

New Listings: 669

vs. last week: +17.37%

vs. last month: -1.91%

vs. last year: -12.55%

Avg. Sale Price: $238,144

vs. last week: -0.25%

vs. last month: -2.44%

vs. last year: -1.99%

Avg. Days On Market: 23.07

vs. last week: +0.92%

vs. last month: -8.42%

vs. last year: -24.09%

Absorption Rate: 25.96%

vs. market equilibrium: +9.29%

vs. last week: +0.70%

vs. last month: -1.60%

(based on data from Cincinnati MLS)

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 quite a bit vs. last week, but are still down significantly vs. last year. Avg. Sale Price is down slightly across the board. Avg. Days On Market is up a little vs. last week, but down notably vs. last month and vs. last year.

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 25.96% can also be expressed as a 3.85 months’ supply of homes. This rate is 9.29% 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.