New Listings: 243
vs. last quarter: +22.11%
vs. last year: -27.25%
Avg. Sale Price: $337.869
vs. last quarter: +9.85%
vs. last year: +11.96%
Avg. Days On Market: 24.11
vs. last quarter: -23.17%
vs. last year: -7.91%
Absorption Rate: 26.92%
vs. market equilibrium: +10.25%
(based on data from Cincinnati MLS)
In the 2nd quarter of 2020, New Listings rebounded vs. last quarter, but are still down significantly vs. last year. This suggests that the market is recovering from COVID-19, but it still has quite a bit of catching up to do. Avg. Sale Price is up and Avg. Days On Market is down considerably in both measures. It’s no surprise that the Absorption Rate is up as a result. Other than New Listings being up vs. last quarter, all other figures illustrate a sellers’ market with 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 26.92% can also be expressed as a 3.72 months’ supply of homes. This rate is 10.25% 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.