Welcome to the next edition of the Fort Worth Market Update . For this update, we will be looking at homes between $300K and $400k. With mortgage interest rates at an all time low, many buyers are deciding to come back to the market. How did this affect the overall numbers? You should keep reading to find out.
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 May 2019)
Homes for Sale
We have seen an over 60 percent increase in the number of homes for sale in this price range in Fort Worth. For this past May, we had 621 homes on the market while we had 502 last year and 352 in 2017.
What this means for sellers:Sellers are going to have more competition than they have had in the past several years. It is best for sellers to work with their listing agents to put their homes in the best light for buyers. At this price point, buyers are expecting stellar presentations, with fresh paint on the walls and clean floors. You should also be careful not to overprice homes in this market. Most buyers will be coming to your neighborhood for a certain price point. If you go over that price point, you will not get much interest.
What this means for buyers: Buyers shopping in this price range should rejoice at the extra homes on the market. With more options, you don’t have to make snap decisions on properties any longer. You can wait to see if you can find a better more appropriate home for yourself. You can work with your Realtor to schedule several properties for the next weekend versus going out immediately to see a home. You no longer have to rush (there are always exceptions so be sure to ask your realtor if it is a hot property!).
We saw 300 new listings come on the market in this price range in May 2019. Compared to last year, we saw a 14% increase in the number of new listings. Back in 2017, we had 30% less new listings than this year.
What this means for sellers: The increase in new listings should alarm sellers with homes on the market for awhile. Typically, when we see an uptick on the number of new listings, buyers show less interest in older listings.. It has been shown that homes that linger on the market will be outplayed by newer listings. The honeymoon stage for most listings is about two weeks. If you haven’t had a showing or an offer in 14 days, you might need to take another look at your sales price.
What this means for buyers: Buyers should be careful not to go after new listings, just because it is the latest house on the market. New listings will generally have more competition. If you want to find sellers who are more willing to negotiate, you should look at homes that have been on the market for three or four weeks. Sellers in these positions tend to start to worry about their marketability as days on market grows longer. Buyers might be better off looking at these homes versus the newer listings.
Average Pct of Original List Price
Sellers are still getting over 97% of their original list price in this price range in Fort Worth. We did see a small decrease of .4% from this time last year.
What this means for sellers: Despite the increased competition from other sellers, most home owners are still getting very close to their asking price for their homes. You can use this statistic to determine your bottom line when it comes to offers. If you go below the 97% of asking price, you are selling yourself short on the sell of your home.
What this means for buyers: Buyers should always look at this statistic for deciding what to offer on a home. If most homeowners are getting 97% of their asking price, then you don’t want to offer your initial sales price to be lower. If you do, most astute sellers will just wait for another offer.
We saw an inventory of four months in May 2019, which is 14% higher than 2018 and over 27% more than two years ago. As a reminder, six months inventory is considered a healthy market by many real estate experts.
What this means for sellers: Sellers in this price range in Fort Worth will have to wait longer to sell their homes as increased competition and lower number of buyers means longer waits for the sale. Sellers should price their homes competitively and make sure to keep their homes looking presentable to sellers. As frustrating as it may seem, you can’t cut back on sales presentation in this price range and expect a buyer to purchase your home.
What this means for buyers: Once again, Buyers should have more time to find their home than we have seen in the past. Most homes will get several showings while staying on the market longer so buyers can leisurely shop homes. Offers should still be aggressive, but buyers can even make offers with lower offer prices if they feel the home is overpriced. Sellers will be willing to negotiate when inventory is higher.
We saw 206 homes close in May 2019 as compared to 183 this time last year. It is up over 20 percent from two years ago.
What this means for sellers: Although we have seen an increase in the number of closed sales in this price range, it has not kept up with the number of new listings. When you have more homes coming on the market than you have selling, you are going to see an increase in inventory. Sellers should work with their listing agent to figure out how to market the homes more effectively using social media, open houses and online ads.
What this means for buyers: Buyers are finding more properties to buy than we have seen in the last three years. This is good news! Buyers have been left with little options for years now so it is nice change for them. If you are buyer who left the market two years ago for its craziness, you might consider coming back to take another look at this larger inventory of homes.