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Cincinnati Real Estate Market – Week 41

by | Oct 14, 2020 | Market News, Real Estate

New Listings

This Week

630

vs. Last Week

-5.26%

vs. Last Month

-10.51%

vs. Last Year

-0.63%

Closings

This Week

365

vs. Last Week

-39.67%

vs. Last Month

-16.86%

vs. Last Year

-13.10%

Avg. Sale Price

This Week

$251,477

vs. Last Week

-6.87%

vs. Last Month

-4.57%

vs. Last Year

+20.64%

Avg. Days On Market

This Week

22

vs. Last Week

+15.79%

vs. Last Month

+20.22%

vs. Last Year

-4.35%

Absorption Rate

This Week

37.70%

vs. Equilibrium

+21.03%

vs. Last Week

-0.27%

vs. Last Month

+2.47%

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.

With New Listings, Closings, Avg. Sale Price, and the Absorption rate all down vs. last week, it appears that the market is cooling off a bit. This normally happens at the start of the school year (late August), but was delayed this year, most likely due to buyers and sellers who postponed their plans during the COVID-19 shutdown entering the market recently. However, Avg. Sale Price vs. last year is up dramatically and the Absorption Rate is still at a near-record high – both of which indicate 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 37.70% can also be expressed as a 2.65 months’ supply of homes. This rate is 21.03% 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.