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Cincinnati Real Estate Market – Week 30

by | Jul 29, 2020 | Market News, Real Estate

New Listings

This Week

671

vs. Last Week

-0.30%

vs. Last Month

-1.61%

vs. Last Year

-10.65%

Closings

This Week

475

vs. Last Week

vs. Last Month

vs. Last Year

-16.81%

Sales Volume

This Week

$124,105,433

vs. Last Week

vs. Last Month

vs. Last Year

-8.22%

Avg. Sale Price

This Week

$261,275

vs. Last Week

-1.79%

vs. Last Month

+2.88%

vs. Last Year

+10.33%

Avg. Days On Market

This Week

21.82

vs. Last Week

-19.01%

vs. Last Month

-8.09%

vs. Last Year

-18.40%

Absorption Rate

This Week

29.89%

vs. Equilibrium

+13.22%

vs. Last Week

+0.31%

vs. Last Month

+2.72%

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 nearly unchanged vs. last week and vs. last month, but are still down significantly vs. last year. Closings are down dramatically vs. last year and Sales Volume is also down considerably as a result. Avg. Sale Price has changed little vs. last week and vs. last month, but is up big vs. last year. Avg. Days On Market figures are down across the board. The Absorption Rate has continued to rise to new heights week after week, for the past few weeks. All of these figures, except for the drops in Closings and Sale Volume, illustrate a tight market, with very low inventory and strong demand. The decrease in Closings and Sales Volume are a direct result of the inventory shortage. Strong demand is indicated by the lower YTD rate of decrease in Closings and Sales Volume as compared to the YTD rate of decrease in New Listings.

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 29.89% can also be expressed as a 3.35 months’ supply of homes. This rate is 13.22% 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.