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Cincinnati Real Estate Market – Week 37

by | Sep 16, 2020 | Market News, Real Estate

New Listings

This Week

704

vs. Last Week

+27.08%

vs. Last Month

+8.81%

vs. Last Year

-3.83%

Closings

This Week

439

vs. Last Week

+25.07%

vs. Last Month

-22.98%

vs. Last Year

-3.09%

Avg. Sale Price

This Week

$263,517

vs. Last Week

+5.55%

vs. Last Month

+2.71%

vs. Last Year

+16.36%

Avg. Days On Market

This Week

18.30

vs. Last Week

-3.84%

vs. Last Month

-16.36%

vs. Last Year

-20.26%

Absorption Rate

This Week

35.23%

vs. Equilibrium

+18.56%

vs. Last Week

-0.11%

vs. Last Month

+2.16%

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 big vs. last week and vs. last month, and only down slightly vs. last year. Closings are up considerably vs. last week, down quite a bit vs. last month, and down a little vs. last year. Avg. Sale Price is up a little vs. last week and vs. last month, and is up significantly vs. last year. Avg. Days On Market is down across the board. The Absorption Rate dropped slightly vs. last week for the second week in a row. This emerging trend, along with New Listings on the rise, may be a sign that the market’s unrelenting swing toward the sellers’ favor is slowing down a bit. However, these figures continue to 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 35.23% can also be expressed as a 2.84 months’ supply of homes. This rate is 18.56% 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.