The number of homes sold in a year expressed as a percentage of the number of existing homes in that area represents the Housing Turnover Rate for that neighborhood.
A low turnover rate is an important indicator of the stability of the housing market in that area.
I am pleased to report that in Mt Olympus, an area where I specialize, the Turnover Rate for 2011 was only 2.5%.
Any percentage under 3% is extremely low.
In general 4%-6% would be considered acceptable or normal. More than 6% approaches the high side, and indicates that further research may be needed to determine why so many properties were being sold.