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Cincinnati Real Estate Market – Week 35

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

New Listings

This Week

651

vs. Last Week

+2.36%

vs. Last Month

-12.73%

vs. Last Year

-2.11%

Closings

This Week

715

vs. Last Week

+40.75%

vs. Last Month

-8.92%

vs. Last Year

-8.80%

Avg. Sale Price

This Week

$270,744

vs. Last Week

+5.84%

vs. Last Month

-2.70%

vs. Last Year

+16.68%

Avg. Days On Market

This Week

18.14

vs. Last Week

-25.04%

vs. Last Month

-34.72%

vs. Last Year

-32.91%

Absorption Rate

This Week

35.51%

vs. Equilibrium

+18.84%

vs. Last Week

+1.98%

vs. Last Month

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, it’s encouraging for buyers to see that New Listings are down only a little bit vs. last year. Closings are up dramatically vs. last week, because title companies, lenders, and agents always try to squeeze in as many closings as possible before the end of the month. The Closings figures vs. last month and vs. last year are in line with the drop in inventory vs. last year. Avg. Sale Price continues to make huge gains vs. last year, while Avg. Days On Market is down significantly across the board. The Absorption Rate reached a new all-time high again, as it has for the past several weeks. Overall, these figures reflect 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 35.51% can also be expressed as a 2.82 months’ supply of homes. This rate is 18.84% 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.