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Cincinnati Real Estate Market – Week 39

by | Sep 30, 2020 | Market News, Real Estate

New Listings

This Week

571

vs. Last Week

-12.02%

vs. Last Month

-12.29%

vs. Last Year

-7.90%

Closings

This Week

521

vs. Last Week

+9.22%

vs. Last Month

-27.13%

vs. Last Year

-9.55%

Avg. Sale Price

This Week

$246,096

vs. Last Week

+1.85%

vs. Last Month

-9.10%

vs. Last Year

+9.83%

Avg. Days On Market

This Week

16

vs. Last Week

+6.67%

vs. Last Month

-11.80%

vs. Last Year

-46.67%

Absorption Rate

This Week

36.40%

vs. Equilibrium

+19.73%

vs. Last Week

+0.65%

vs. Last Month

+0.89%

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, there are no big surprises. The Absorption Rate has continued to rise, which is a serious concern for buyers. 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 36.40% can also be expressed as a 2.75 months’ supply of homes. This rate is 19.73% 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.