In real estate, the term “turnover” generally refers to the rate at which properties in a given market are sold and replaced with new properties. Specifically, it is a measure of how quickly properties are sold and how frequently they change ownership.
The turnover rate can be calculated by dividing the total number of properties sold during a given time period by the total number of properties in the market. For example, if there were 100 properties in a particular market and 20 of them were sold during the past year, the turnover rate for that market would be 20%.
Turnover is an important metric for real estate investors, as it can give insight into the overall health of a market and help to inform investment decisions. A high turnover rate may indicate a strong demand for properties, while a low turnover rate may suggest that the market is sluggish or oversaturated.