Market Turnover Efficiency Score
Discover Austin’s Market Turnover Efficiency Score with Team Price. Assess inventory turnover, market speed, and when to buy or sell with expert Austin real estate metrics.
The Market Turnover Efficiency Score (MTES) measures how efficiently the Austin real estate market is turning over inventory by balancing the rate of sales, the influx of new listings, and the speed of pending transactions, providing a comprehensive indicator of market activity and fluidity. A higher MTES reflects a market where inventory is moving quickly, indicating strong demand and efficient transaction flow, while a lower score suggests stagnation, with slower sales and a buildup of inventory.
An MTES above 70% favors sellers, signaling a fast-moving seller’s market, while a score below 30% favors buyers, indicating a slower market with more opportunities for negotiation. This report is important because it offers a holistic view of market efficiency, helping stakeholders understand how quickly homes are moving from listing to sale, which can significantly impact pricing, competition, and transaction timelines in Austin’s dynamic real estate landscape. It serves real estate agents, homebuyers, sellers, and investors by providing actionable insights into market turnover.
Sellers can use this data to determine if a high MTES makes it a good time to list, as quick turnover suggests strong demand and potential for higher prices, while buyers can identify opportunities in a low MTES environment, where slower turnover may lead to better deals and less competition, especially as related metrics like the Active-to-Pending Ratio (e.g., 3.8 in late 2024) indicate a buyer’s market.
Agents rely on this metric to advise clients on timing and pricing strategies, ensuring they align with market efficiency, and investors use it to assess the potential for quick sales or longer holding periods, particularly in a market where inventory turnover has historically varied with economic conditions—such as the rapid turnover in 2021 (MTES up to 100%) versus the slower pace in 2024 (MTES around 10.6%–18.6%). Historical data over the years shows how Austin’s market efficiency has responded to economic shifts, interest rate changes, and demand fluctuations—check the embedded report below for the latest MTES and detailed breakdowns.
