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.
