What does "inventory turnover" refer to in real estate?

"Inventory turnover" in real estate refers to the rate at which properties are sold and replaced. This metric is crucial for evaluating how quickly properties are moved off the market and how rapidly new properties are introduced to replace them. A high inventory turnover indicates a strong demand for properties, suggesting that they are selling quickly, while a low turnover may imply excess inventory or lack of buyer interest.

Understanding inventory turnover helps real estate professionals manage supply effectively and adjust marketing strategies based on current market conditions. It also provides insights into market trends, which can guide investment decisions and pricing strategies.

The other choices revolve around different aspects of real estate but do not define inventory turnover accurately. The appreciation of property values measures how well properties retain or increase in value over time, the number of properties available in the market refers to inventory levels rather than their movement, and property maintenance frequency relates to the upkeep of properties, which is unrelated to turnover rates.