New Listings: 715
vs. last week: +11.37%
vs. last month: +25.44%
vs. last year: -7.86%
Avg. Sale Price: $246,396
vs. last week: -0.44%
vs. last month: +3.21%
vs. last year: +5.13%
Avg. Days On Market: 22.06
vs. last week: -15.45%
vs. last month: -3.50%
vs. last year: -22.08%
Absorption Rate: 26.07%
vs. market equilibrium: +9.40%
vs. last week: +0.02%
vs. last month: +0.81%
(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 big story is New Listings are up significantly vs. last week and vs. last month, and are down much less vs. last year than in previous weeks. Although this increase in New Listings has not yet had an impact on the other figures, it ought to at least lower the Absorption Rate if the trend continues.
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 26.07% can also be expressed as a 3.84 months’ supply of homes. This rate is 9.40% 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.