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Cincinnati Real Estate Market – Week 29

by | Jul 22, 2020 | Market News, Real Estate

New Listings: 673

vs. last week: +1.36%

vs. last month: -5.87%

vs. last year: -7.04%

Avg. Sale Price: $266,046

vs. last week: +6.67%

vs. last month: +7.97%

vs. last year: +11.31%

Avg. Days On Market: 26.94

vs. last week: +11.28%

vs. last month: +22.12%

vs. last year: +5.32%

Absorption Rate: 29.58%

vs. market equilibrium: +12.91%

vs. last week: +0.83%

vs. last month: +3.51%

(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 show only single-digit percentage change across the board. Although New Listings are still down vs. last month and vs. last year, they’re not down as much as they have been in recent weeks. Avg. Sale Price and the Absorption Rate are up significantly across the board, indicating low inventory and high demand once again this week. In fact, the Absorption Rate is at its highest point this year. Avg. Days On Market figures this week appear to be an outlier, as they don’t match the trend illustrated by the other figures.

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 29.58% can also be expressed as a 3.38 months’ supply of homes. This rate is 12.91% 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.