Are you looking for a home between $150,000 and $200,000 in Fort Worth? This Fort Worth market update report is for you. We dive into the numbers for homes in this price range to give you a solid market snapshot of the market.
Our methodology for this Fort Worth market update is straightforward. We use the North Texas Real Estate Information Services (NTREIS)to present you with a broad overarching look at Fort Worth for this price range. For those who do not know, this multiple listing service is the place real estate agents advertise their houses for sale. Each listing will have certain required data. NTREIS then compiles and manages this data to allow for use by its members to keep buyers and sellers appraised of the market conditions in the Dallas-Fort Worth area.
If you are looking for a specific region to get numbers, please let us know. We can focus specific areas from certain neighborhoods, zip codes and draw specific areas We will work with you to give you the data you need.
With this Fort Worth market update, we would first like to show you the spread of the location of houses in this price range. (as of August 2018)
Homes for Sale
How many homes were for sale in Fort Worth in our targeted range? By graph below, you can see that the number of houses for sale has decreased by 13.1% since 2016. We had 305 homes for sale in July 2018. As you can imagine, the number of buyers in Fort Worth far outweighs the number of homes available, which is one of the reasons this market is so competitive for buyers right now. If you want to sell your house and it is valued in our range, there is no better time to sell. Most likely, you will have a lot of interest in the home. If you do decide to sell, you need to be sure make a good presentation for buyers during your showings. You need to clean well and make sure clutter stays under control. If funds are available, you might think about getting the floors professionally cleaned and having the paint touched up to make it look fresh. Please also remember to work with your realtor to price the property correctly.
When it comes to how many new listings we had in July 2018, you can see that is very similar to the number of homes on the market. We saw 307 new homes in our price range come on the market last month, which is 22.3% lower than in 2016. Buyers shopping in this price range should realize that they will have few options when it comes to homes for sale. All buyers who want to buy a home at this time should set their expectations accordingly. If you are expecting to find a property that will have everything you want in it, you might have to wait awhile before you find it. It is best for buyers to try to find a certain percentage of their wants in a house. In other words, you might have to compromise a bit if you want to get a house right now.
Average Sales Price
The average sales price for homes in this range is just over $180K. This number really has not changed much in the last three years, raising only 3.3%, which is far lower than the average appreciation for the entire region. Investors should take note of this statistic if you are looking to purchase a buy and hold property in the price point. You won’t see the appreciation you might get a higher price point. As you can see from the map above, many of the homes in this price range fall in areas that are at a social-economic disadvantage where poverty is widespread. If you do plan to purchase in this price point in Fort Worth, you need to make the appropriate plans to do deal with possible higher crime and have many unqualified applicants for renting the property.
Average Price per Sq Foot
For this statistic, we have seen a 16.2% increase in the last three years. With the average sales price increasing at much slower rate, it is another oddity that price square foot would be going up at a higher rate. One possible explanation is that smaller homes are going on the market at the higher average sales price, which drives up the price per square foot. Buyers should be aware that with raising interest rates, you will be able to afford a less expensive home, which means you most likely will find smaller homes than you might be hoping to find. It goes back again to being flexible with your expectations with a home right now. You can’t be as picky if you want to buy a home in this market.
How many months will it take the current supply of homes in this price range to sell out? The answer to this question gives us the months supply. For those who don’t know, if it takes less than six months for the current inventory to sell than we are in a seller’s market. As you can see form the graph below, we haven’t been above 2 months supply in three years. In fact, we have been closer to one month. What does this mean for sellers? It means your home will be one of the few options for buyers in this price point. If you are thinking about selling your home, you might want to call up your real estate agent to get it on the market.
Our last statistic adds to the oddity of the situation with this price point in Fort Worth. We saw 257 closed sales in this price range in July 2018, which is 25.7% less than July 2017. We are now seeing less homes put on the market, but less of them are closing. Why? It might be the first indication of a market slow down as buyers are pulling out of the market to wait for more options. It could also mean that the 9% increase in inventory is starting to take effect as buyers are being more selective in where they make their offers. Regardless of the reason, this is good news for investors as they will have more options, which stay on the market longer, than we have seen in three years. Investors can also be more selective on their offers and hopefully drive down some of the speculation in outlandish offer prices we have seen in recent months.