What is the turnover index if a neighborhood has 500 homes and 95 sold last year?

To calculate the turnover index, you can use the formula:

Turnover Index = (Number of Homes Sold / Total Number of Homes) x 100

In this scenario, there were 95 homes sold in a neighborhood that consists of 500 homes. Plugging in the numbers:

Turnover Index = (95 / 500) x 100

This calculation results in:

Turnover Index = 0.19 x 100 = 19%

This outcome indicates that 19% of the homes in the neighborhood were sold within the year, reflecting the level of real estate activity in that area. The turnover index is a useful metric for gauging market dynamics, as a higher turnover can indicate a more active real estate market.