New Listings: 579
vs. last week: -15.10%
vs. last month: -11.47%
vs. last year: -3.50%
Avg. Sale Price: $251,076
vs. last week: -1.14%
vs. last month: -2.66%
vs. last year: +1.03%
Avg. Days On Market: 24.96
vs. last week: +5.14%
vs. last month: +5.76%
vs. last year: -4.81%
Absorption Rate: 28.33%
vs. market equilibrium: +11.66%
vs. last week: +1.16%
vs. last month: +2.46%
(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 the Absorption Rate is up significantly vs. last week and vs. last month. This is the second week in a row that this has happened. The tight market has been getting even tighter and is now at its tightest since I started tracking this figure in mid-April of this year. New Listings are down considerably vs. last week and vs. last month, but that is to be expected during a holiday week, which is reflected is the much less significant decrease vs. last year.
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 28.33% can also be expressed as a 3.53 months’ supply of homes. This rate is 11.66% 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.