Market Flow Score: Real-Time Housing Efficiency Indicator

Track the velocity of the Austin housing market with the Market Flow Score (MFS). See how efficiently listings are turning over each month and what it means for buyers and sellers.

What Is the Market Flow Score (MFS)?

The Market Flow Score (MFS) is a monthly index that measures how efficiently the Austin-area housing market is absorbing inventory. It captures the speed and health of market turnover—how quickly active listings are converting to pending or sold—using a data-driven formula.

Where other indicators look at raw listing counts or average prices, the MFS goes deeper, offering a composite view of demand and inventory fluidity. A high MFS indicates strong buyer engagement and fast-moving inventory. A low MFS reflects sluggish turnover, hesitant buyers, or oversupply. These components are averaged and then rescaled to a 0–10 scale using historical min/max bounds to provide a consistent monthly index.

How to Interpret the MFS : Each MFS value fits into a defined range that represents a type of market condition:

0.0 – 1.0 → Frozen Market

Market activity has nearly stalled. Homes are sitting, buyers are hesitant, and turnover is minimal.

1.1 – 2.5 → Slow Market

Listings are moving slowly. Inventory is building, and sellers are starting to lose leverage.

2.6 – 4.0 → Frictional Market

Some turnover is occurring, but it’s inconsistent. Buyer and seller behavior is cautious and mixed.

4.1 – 5.5 → Balanced Flow

Supply and demand are relatively even. Some listings sell quickly, others take time.

5.6 – 7.5 → Active Market

The market is healthy and responsive. Homes are selling at a steady pace, often with multiple offers.

7.6 – 10.0 → Accelerated Market

Listings are flying off the market. Buyer urgency is high, and sellers are often in control.

Frequently Asked Questions (FAQs)

1. What is a good Market Flow Score?

A score between 5.6 and 7.5 indicates a healthy, active market where listings are turning over efficiently. Anything above 7.5 suggests a highly competitive market with strong buyer demand and fast absorption.

2. How is the Market Flow Score different from the Months of Inventory metric?

Months of Inventory is a lagging indicator of supply. MFS is more dynamic—it incorporates how quickly inventory is being absorbed each month. It reflects both demand strength and listing responsiveness in real time.

3. Why does the MFS need to be rescaled from 0 to 10?

Historically, Austin's MFS has ranged from 0 to just over 5. Rescaling to a 0–10 scale ensures the index is intuitive, visually clean, and easier to interpret and compare across time.

4. How should agents use the MFS with clients?

Use MFS scores to explain market conditions during buyer and seller consultations. If MFS is low, help sellers price more aggressively. If MFS is high, prepare buyers to move quickly and face competition.

5. Does a high MFS mean prices are rising?

Not necessarily. A high MFS reflects turnover velocity—not pricing. However, rising MFS scores often precede price increases, making it a useful early signal of upward momentum.

Central Texas MLS | Four Rivers Association of REALTORS® All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Matthew Nuncio may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2022 All rights reserved.

The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Based on information from the Austin Board of REALTORS®. Neither the Board nor ACTRIS guarantees or is in any way responsible for its accuracy. All data is provided "AS IS" and with all faults. Data maintained by the Board or ACTRIS may not reflect all real estate activity in the market.

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Market Flow Score: Real-Time Housing Efficiency Indicator

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Market Flow Score: Real-Time Housing Efficiency Indicator