Welcome to the next edition of the Fort Worth Market Update. For this update, we will be looking at homes in the price range of $200K to $300K. After you looking over the numbers, you will see that much of the inventory in the market in Fort Worth falls into this range. It is the one area of the Fort Worth market that appears to have enough options for buyers.
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
In July 2018, we had 2,754 homes for sale in this price range in Fort Worth. If you read other Fort Worth Market Updates, you know that this number is higher than some of the other price ranges. We are starting to see more and more homes come on the market in this price range as can be seen by the 25% increase from 2016. As a seller, it means you will probably not have a lot of buyers viewing your property the first weekend on the market. If you get five or six showings scheduled, you are looking at a good interest in your home. Be sure to speak to your agent about the correct list price as you can no longer list it at the highest point of the range and expect to sell it. Because there are more homes for sell, you need to be sure to be even more diligent in your upkeep of your home while it is on the market. You need to clean up clutter on a daily basis and do a nice cleaning job of the bathrooms and kitchens before each showing. If your budget allows for it, you might even have the floors cleaned and the paint touched up to make everything shine during the showings. You need to always put your home in the best light to impress the buyers!
This statistic is another indication that we might be seeing the first signs of a slowdown, at least in this price range, in Fort Worth. New listings went up nearly 10% from this time last year to 1,709. From 2016, we saw an increase of 14.5% in new listings in July. I believe sellers are starting to realize that they might need to enter the market immediately. For buyers, this means you are in a more normal market than we have been in the last four years. You have some options which can allow you to be more selective in your offers for homes. It is still a good idea to move on any hot home that looks really good and priced well. Hopefully, your agent will inform you of when these hot properties hit the market. You can also scale back a bit on the offers. It is probably still a good idea to offer asking price on a home, but the days of making offers $10K or more over asking price is probably coming to an end this year. Your real estate agent should be able to inform you on how aggressive you need to be for any specific property.
Average Sales Price
The average sales price is $262K for this price point in Fort Worth, which is 4.6% higher than this time last year. When it comes to previous years, this number pales in comparison as you can see from the 11.6% increase we saw from 2016 to 2017. This double digit increase has been common for the last few years so appreciation is slowing down quite a bit as more houses come on the market and more buyers realize the main rush might be dying down. For investors, you have to take this into consideration as you look over properties for purchase, especially if you are looking to buy and hold a property for long term. Do you wait next year(when prices might flatten) before purchasing your next property? Will the cycle bring the prices back up to the level we are seeing today? For flippers, you can’t expect to speculate on prices as much as you have done in the past because you might find yourself sitting on a property for awhile as buyers become more selective in their purchases as they know prices will not be going up as much.
Average Price per Sq Foot
As with average price, we are seeing single digit increases in the prices since this time last year with the average being $122 per square foot. This eight percent increase is definitely bucking the trend of double digit increases we have seen in recent memory. For sellers, you need to ask your agent to do a report on your area similar to these Fort Worth Market updates. In addition, be sure to request a Comparative Market Analysis from the agent so you can see the price point of homes in your area. In other words, you need to dig into the data to justify your listing price versus your gut feeling. If you find yourself without a showing in a week or an offer in two weeks, most likely you have priced yourself out of the market. It never looks good to lower the price of your home several times as buyers begin to wonder what is wrong with the property.
For the past year and half, we have seen more and more homes put on the market in this price point in Fort Worth (and across the entire region). For this July, we saw a 2.5 month supply of homes on the market in this price range. For those who don’t know, the months supply is determined by looking at how long it will take the current inventory to sell out to the current number of buyers. This price range has seen a boon as late with inventory going up 18.5% since 2016. Buyers need to realize that if you are shopping this price point, you might have a lot of more homes to see. As we wrote before, this means you can be more selective in houses you aggressively pursue and will probably see a lot less number of multioffer situations. In fact, many listing agents will find themselves having to seek out buyers more proactively in this price point so sellers might be more prone to negotiate.
Our last statistic for this Fort Worth Market Update is how many closed sales of homes we saw in July. It is virtually the same as last year with 1280 homes being sold in July in this price range in Fort Worth. We are seeing a lot more new listings (1709) than we are seeing closed sales right now (1280). It is still a good amount of turnover, but we are seeing more homes staying on the market longer now. For investors, this means they might take the strategy of waiting 60 or 90 days before pursuing a property. If a seller has waited this long to sell their house, they might be much more prone to negotiate a lower price to allow you to get a better return. With more selection on the market, it also means retail buyers will be more picky about the properties they pursue leaving the more distressed properties on the market for investors. If you are real estate investor, you know that there is always opportunity in every market downturn or upswing as long as you keep your portfolio mixed with the ability to change tactics with the changing market.