Welcome to the next edition of the Fort Worth Market Update . For this update, we will be looking at homes between $200K and $300k. This price range has had the largest number of homes for sale in Fort Worth. Buyers are common as well, but our outnumbered by buyers in other price ranges.
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
In Fort Worth, we saw an increase of 23.1% in the number of homes for sale in this price point from April 2018 to April 2019. From 2017, we saw a 46.9% jump in the number of homes for sale from 597 to 910.
What this means for sellers: This is the price range in Fort Worth (and the entire region) that tends to have the highest number of homes for sale. The fact that we currently have close to 50% more homes for sale now than we did two years ago should be a wake-up call for sellers. You are going to have more competition which means you will have less buyers viewing your home. You have to do what you can to stand out from the crowd. Whether that means pricing it aggressively, or making some upgrades or repairs, you have to find a way to get noticed. You should speak to your Realtor about some options.
What this means for buyers: Buyers should enjoy the fact that they have more options on the market. For the most part, you no longer have to worry about whether a house is going to sale immediately, because you have other options in the market. You don’t have to settle for the house you can get at the moment. At the same time, if sellers take our advice (see above) and make their home attractive, you will still need to move fast to get your offer into the listing agent. We are still seeing quality homes go quickly with multi-offers.
After a huge jump from 2017 to 2018 of nearly 40% in new listings, the number dived fast to a lowly 4% for April 2019. You had 703 new listings last year with only 731 new listings this year.
What this means for sellers: Sellers should take note the slow increase in new listings does not mean we are not seeing more new listings enter the market. It is over 40% more since 2017. New competition is still entering the marketplace at a much faster clip, which means the advice we gave in the last section is even more important. Since it won’t be as easy to sell your house, you will need to be more flexible in making your home available for showings. Don’t fudge on this! If a buyer can’t see your house, they will go to the next one and buy it instead.
What this means for buyers: Buyers should like seeing more new listings than we have seen in the last few years. With new listings, there is a honeymoon period where a lot of people show interest initially. The fear of missing out (FOMA) drives many buyers to check out any new listings coming on the market. Once trick you can ask your Realtor to do is to contact homes with the status of “coming soon”. Many times, listings agents put these online as a preview of things to come. It doesn’t mean you can’t look at the properties. Your Realtor should arrange for you to see the property.
Average Pct of Original List Price
Sellers are getting 99.1% of their listing price. This number is actually down from 99.7% from 2018 and 100% in 2017.
What this means for sellers: At first glance, this is a good thing for sellers as they are still getting close to the list price they are seeking with their sale. However, if you dig deeper into the trends, you know that many sellers are dropping their prices initially because the market is not hot as it was two years ago. Sellers need to relax a bit on their aggressive pricing. Nothing can delay a sale quicker than overpricing a home.
What this means for buyers: Buyers should always take note of this statistic when deciding what to offer for a home. Sellers will know it and expect buyers to offer something within reasonable reach of this percentage. If a seller thinks you are going too low, they will either reject the offer outright, or counter something close to their listing price. At the same time, buyers might want to take a chance with a lower offer. Sellers might be more willing to negotiate based on the slight decrease in this statistic.
This price range month’s supply is still down under 2 months with 1.9 months in 2019. This number is actually an 11 percent increase from last year and just slightly higher than two years ago.
What this means for sellers: For those who don’t remember, historically we say that six months supply is considered a healthy market, but we have not seen this for years. We are still considered in a seller’s market based on this statistic, but the market dynamics, as seen from the other stats, show that buyers are starting to gain more traction. Sellers need to be open to negotiation and scale back expectations of the amazing advantages they have had over the past few years. These advantages are harder to come by for home owners.
What this means for buyers: Despite the historical number always being six months, it seems to this writer that we will not be seeing a “technical” buyer’s market for many years, if ever. You have to look at other statistics to better understand how to approach your house hunt. It is like in baseball. WAR is a much more valued statistic than batting average is today. The housing industry is seeing its own transformation when it comes to the statistics that are important to house buyers.
The number of closed sales in this price range in Fort Worth has increased by 39.3% in the last two years. In 2019, we saw 577 homes close, which is 173 more than we saw in 2017.
What this means for sellers: This statistic is a bit of surprise, considering we are seeing less new listings come on the market. However, perhaps we are seeing enough new homes to make this number jump to its current level. With 731 new listings coming on the market and 577 closing in April, there are 154 homes not selling, which adds the average days on market. Sellers need to prepare themselves for more showings and longer periods of time where buyers will need access to the house. It is a pain, but if you want to sell your home at top dollar, this traditional way of selling still brings you the most bang for your buck.
What this means for buyers: Buyers flocked to the market in April due to the lower mortgage interest rates. In fact, some industry experts are saying that April was the high month for the year. We don’t necessary agree with this analysis, but it could explain why we had some many closings last month. Buyers should try to balance their strategy and tactics to account for more buyers and more inventory. A Realtor will have some good ideas on how to approach the current market.