Welcome to the next edition of the Fort Worth Market Update . For this update, we will be looking at homes between $150K and $200k. Buyers are numerous in this price range yet the homes available is low. With wages moving up slowly, most buyers are unable to afford anything more expensive. Turnover is fast in this price range.
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 real estate in 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 Realtors 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.
We are changing a few things about our Market Updates. Some of the statistics we have been highlighting are not really useful for consumers so we have eliminated them from the report. Average sales price will no longer be featured. If you are curious about this statistic, you can look at the monthly broad market update, where the statistic is much more relevant. In its place, we have added the statistic, average percent of original list price. We feel this statistic will be much more useful to buyers and sellers.
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 April 2019)
Homes for Sale
The number of homes for sale in this price point grew by 14.5 percent from March 2018 to March 2019. This was a drastic increase from the 2.5% increase we saw from 2017 to 2018,
What this means for sellers: Sellers should take note that there are more homes on the market this year than we have seen in the last three years. With 42 more homes on the market in two years, it does mean sellers will face increasing competition in this price point. Sellers should make a point of doing inexpensive things to make their home more appealing like clutter cleanup and keeping the front lawn presentable for the curb appeal. You do not have to spend a ton of money to make your house stand out among the competition. Inventory is still historically low in this price range so any work you do on making the house look more presentable will get noticed.
What this means for buyers: Buyers will have more options and with the interest rates staying lower, this means buyers can be more selective in making offers on properties. Buyers should have their wish list for homes. If a property doesn’t tick off a majority of the items on that wish list, buyers should keep looking until they find a home more fitting to their needs. It doesn’t mean to be crazy strict, but you don’t have to settle for a house because it happens to be on the market.
We are not seeing many new listings coming on the market in this price range in Fort Worth. We saw a 11.9% decrease in the number new listings from 2018 to 2019. In 2017, we saw a total of 321 new listings in March. In 2019, we saw a total of 258.
What this means for sellers: Some sellers are holding back on listing their properties that might have listed them in 2017. Why? It has to do with the bad press the real estate market has gotten lately. Pessimistic stories about the market has been seen in the local news. True, the numbers indicate that a slow down of sorts has taken place. However, here in Fort Worth, the inventory is still low and many more homes are selling than staying on the market. Sellers should work with their listing agent to price the house appropriately. If you price the home according to 2017 standards, most likely you house will stay unsold for longer than in the past.
What this means for buyers: Buyers are not seeing as many new options as in the past. Buyers shouldn’t have to settle because there is increased inventory, but at the same time, buyers should know how to make an aggressive offer that will catch the attention of the seller. Basically, your goal is to make an offer that the seller has no reason to turn down. At the same time, buyers should be sensible about their offers and not offer outlandish offer terms. You can give the seller a strong offer without putting yourself in a compromising situation by overpaying for a property.
Average Pct of Original List Price
In this price range, sellers are getting 97.8% of their original asking price. This is slightly down from 2018 when it was 98.8% of list price. In 2017, it was 99.3% of list price.
What this means for sellers: Sellers are getting what they want in this price range. In a seller’s market, this is the case most of the time for any price range. Sellers should still work with their listing agent to make sure to not overprice the property, but sellers can be rest assured that buyers are willing to pay their asking price.
What this means for buyers: Buyers need to work with their buyer’s agent to be sure to offer a sales price that is within 96% of list price. You never want to go with your top price unless you are in a multioffer situation that warrants going straight to the top price. Buyers should always leave some room for negotiation with the seller. However, if you go below 96% of asking, you stand a chance of not getting a counter offer.
The month supply of homes in this price range went over 1 month for the first time in two years when it went up to 1.1 months. Six months turnover is considered a normal market. In this price range, we have seen inventory far below six months for the last three years.
What this means for sellers: Sellers can relax knowing that it will be a seller’s market for the rest of 2019. With such a low inventory, it is vital that the seller does work to present their home in a favorable light. If you stand above the competition, you stand a better chance of selling quickly ,
What this means for buyers: With a 22% increase in the months supply, buyers should feel good about having more options in this price range. However, the inventory is still very low so be sure to make it out to the properties you like, because there is a good chance, it won’t be there at the end of the month.
We saw the number of closed sales go down in this price range from 306 in 2017 to 255 this March. In 2018, we saw 265 closed sales.
What this means for sellers: Even with the lower number of closed sales, this price range still favors the seller heavily. Sellers should follow the advice of their listing agent and they will most likely see their home sell quickly.
What this means for buyers: Buyers saw 258 new listings in March and saw 255 closed sales. Homes are coming on the market as quickly as they are selling (as the other statistics indicate as well). All the advice given to buyers in this post is supported by this statistic as well. Buyers will have more options, but need to move quickly to see homes and put in aggressive offers.