New Listings: 22
vs. last week: +69.23%
vs. last month: -8.33%
vs. last year: -15.38%
Avg. Sale Price: $289,972
vs. last week: -16.44%
vs. last month: -14.65%
vs. last year: -1.67%
Avg. Days On Market: 16
vs. last week: +15.69%
vs. last month: -46.07%
vs. last year: -30.04%
Absorption Rate: 27.16%
vs. market equilibrium: +10.49%
vs. last week: +1.58%
(based on data from Cincinnati MLS)
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 key take-away is the increase in the Absorption Rate. Although a 1.58% increase vs. last week may not seem like much, it is an indication that a tight market (short supply) has gotten even tighter in the past week.
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 27.16% can also be expressed as a 3.69 months’ supply of homes. This rate is 10.49% 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.