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 $300K to $400K. In this price point, we are getting closer to the level of luxury homes ($500k or higher) with less buyers and even less options for these 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 November 2018)
Homes for Sale
With our latest look at homes for sale in this price point, you can see from the graph below that we reached 612 homes in September, which is over 60% higher than this time in 2016. During the last 12 months, we saw an increase of 39.4%. With these large increases, you can see why many believe the market is slowing turning towards a buyer’s market as more sellers decide to list their home for sale. A market turning from one type to another is not a quick process (there are exceptions aka the last crash). We will most likely see the market turn more into a buyer’s market as time moves forward. Buyers and sellers with plans to buy or sell in the next two years, might want to adjust their plans somewhat depending how the next 18 months play out. There is still no reason to panic and change your plans completely. You should just be aware of the market conditions and adjust your tactics accordingly.
We saw an increase of 12.7% in the last year in the number of new listings. Sellers seem to be realizing that prices are historically high so decide to sell now while the prices stay at this high point. With more competition, sellers should be discussing with their agent how better to get the word out about the listing. One huge aspect of selling your home is getting the list price correct. In the past few years, we have seen homes consistently going up in price so you can realistic mark your property higher than comps and have the market catch up to it before it sells to buyers. With the recent data coming out, however, these days might be gone. It is better for your agent to price your house in a midpoint of the range so the market does not reject it because of its high price. You should also not rely on the price projections you see on the real estate portals like Zillow. They are still not accurate enough to realistically price your home for you. You should rely on your agent to bring your true data and overall knowledge of your neighborhood to better price your home.
Average Sales Price
The average sales price has gone down for two years running for this price range in Fort Worth. As with other Fort Worth Market updates, this statistic should be used to gauge where buyers and sellers can expect to find most of the homes in this price range. For the first time in two years, we are seeing more homes below the $340K price point. Buyers with budgets in the higher price point of this range should realize that their selections will most likely be a little less than what you might get with lower price points. It should also be pointed out that the reduction in price could be a sign of lagging demand coupled with more supply.
Average Price per Sq foot
As you sometimes see when the market is in flux, you see some statistics that make less sense than others. When the market begins to stabilize a bit, the statistics should be more in line with each other. With average price per square foot, we have seen an up and down number over the last three years. After seeing a drop of 6.6% last year in this price range, we corrected this year to 119 per square foot, a 5.3% increase from last year, but still 1.3% down from where it was in 2016. One possible explanation is the increase in homes for sale has a lower square footage. Smaller houses will tend to raise the price per sq foot price. Sellers should be careful not to base their list price purely on the square footage of your property. If your home is not conforming to the rest of the subdivision in size, your list price might be off if you base the price solely on price per square foot.
The one true statistic to utilize for determining if we are in a seller’s market or a buyer’s market is the months supply. If we have six months more of inventory on the market, we are in a buyer’s market. If we see less than six months, we are in a seller’s market. For this month, we saw the months supply at 4.1 months, a 13.9% increase from this time last year. Buyers should be cognizant of this statistic before heading out to look at homes. Be sure to ask your buyer’s agent the months supply for price points you are interested. We are getting closer to six months in this price range. With this in mind, buyers should be able to be more selective on which properties they put in offers. If they don’t like a home for some reason, it is realistic to believe that you will be to see several others in this price range before having to make a decision.
With this price range, we saw a decrease of 12.3% in closed sales from this time last year, where it seems to have peaked at 122 sales. It this another statistic anomaly of the changing market? Most likely this is a result of the market slowing down over the last two months so we are seeing less buying traffic, which means the numbers of closed sales go down as well. There is a possibility that this number will continue to decrease over the next 12 to 18 months.