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Cincinnati Real Estate Market – Week 38

by | Sep 23, 2020 | Market News, Real Estate

New Listings

This Week

649

vs. Last Week

-7.81%

vs. Last Month

+2.04%

vs. Last Year

-10.11%

Closings

This Week

477

vs. Last Week

+8.66%

vs. Last Month

-6.10%

vs. Last Year

-1.24%

Avg. Sale Price

This Week

$241,624

vs. Last Week

-8.31%

vs. Last Month

-5.54%

vs. Last Year

+6.91%

Avg. Days On Market

This Week

15

vs. Last Week

-18.03%

vs. Last Month

-38.02%

vs. Last Year

-46.43%

Absorption Rate

This Week

35.75%

vs. Equilibrium

+19.08%

vs. Last Week

+0.52%

vs. Last Month

+2.22%

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, the only surprise is that Avg. Sale Price is down vs. last week and vs. last month, with a below-average gain vs. last year. The other figures indicate this to be an outlier, but we’ll keep an eye on it to see if it becomes a trend. The Absorption Rate rose to a new all-time high again this week, as it has several times this year. With the exception of the Avg. Sale Price figure, all of 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 35.75% can also be expressed as a 2.80 months’ supply of homes. This rate is 19.08% 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.