Buyers are absorbing homes as fast as they hit the market in greater Cincinnati.

Source: Image by Mabel Amber, still incognito… from Pixabay

The absorption rate is a fancy way to look at how fast the “market” is literally buying homes.  Realtors, banks, housing junkies and relocation companies usually analyze “absorption rates” in order to determine how much inventory is currently available within the area.

The formula is fairly simple:

1. # of closed sales in the 3 months /3 = # of sales per month. ( Single Family Homes in 4 County area = 1877)
2. # of current active listings/ # of sales per month = # of months of inventory. (1280/1877 = .681) 
3. # of months of inventory = absorption rate (less than a month)

The National Association of Realtors (NAR) and state and local real estate associations also publish absorption rates for public consumption.  By NAR standards our market is in total love with sellers at this time.

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According to the Cincinnati Area Board of Realtors currently, the rapid rate of sales favors sellers. 

Bottom Line

Buyers are struggling to find a home they can afford and bidding wars.  Sellers have the advantage (in most areas) but need to stay on top of the shifting marketplace. 

For detailed numbers about your neighborhood.