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 $400K to $500K. As we approach the luxury level of real estate in the Fort Worth area ($500k or higher), you will see smaller numbers than 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 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
We saw a nice increase in the homes for sale in this price range. Sixteen percent more homes came on the market this year as compared to last year to a total of 237 homes. From 2016, it went up from 179 to 237, over a 30% increase in homes for sale in this price range. Sellers should take this increase to heart to set their expectations that more competition means additional challenges to getting your home sold. As with any other industry, as supply goes up, prices are affected, which then in turns affect how long it will take to sell a home. Sellers should be very aggressive in marketing their properties and should make sure their agent has a multi-channel marketing plan including word-of-mouth, direct mail, email and social media. Buyers should rejoice at the additional options now available to them in this price point.
For new listings in this price range, we saw a 4% decrease this year after seeing a 22% increase from 2016 to 2017. With only 69 new listings on the market in October, buyers in this price range must feel frustrated with the lack of new options. Despite this frustration, buyers should work with their agents to come up with a solid strategy on how to approach the house hunt, especially if you are in the higher part of the price range. Conforming loan limits mean jumbo loans come into play with the more expensive properties. One possibility is to find a home that has been on the market for awhile due to poor condition. If you like the “bones” of the property, you can offer a below asking price. Most sellers who have had their property on the market for a number of days are more willing to consider lower offers. Once you own the home, you can rehab and remodel it the way you want it.
Average Sales Price
As with other Fort Worth market updates, this statistic should act as a guide on what price point will be more likely in this price range. This month, we saw the average go up 3.4% to $446K, which could be an indication that we are seeing more expensive homes being put on the market in this price range. Buyers should use this statistic as a way to further fine tune their home hunt. If they know most of the homes are going to be in the middle of the price range, they might want to go higher on the budget in order to get as many options as possible. Sellers should use this statistic as a way to gauge their competition, especially if they are close the average. Do sellers price the property slightly lower to attract more buyers?
Average Sales Price per sq ft
As with average sales price, this statistic should be utilized by buyers and seller to get general feel for the market at this price point. We saw a pretty drastic uptick in this statistic this year with it going up 29.8% to $174 per square foot. With the higher price per square foot coupled with the lower average sales price, one could postulate the market is off kilter and making little sense. When the market is in flux and moving from one type of market (seller’s market to buyer’s market), you will sometimes see statistics that make little sense. One possible explanation for this statistic’s odd numbers is that smaller homes are coming on the market at a higher price point. Sellers are attempting to take advantage of the historically high sales prices.
With months supply, we are seeing no change in the statistic from one year to the next. We are staying strong at 4.4 months of supply, which makes this price range still a seller’s market. We are down from 5.4 months in 2016 so we seeing more homes being bought by buyers with few additional new listings. These two statistics work together to force the turnover margin lower. As a reminder, six months or lower is a seller’s market while higher is a buyer’s market. Most of the DFW area has been below six months inventory for several years now.
We are seeing more closed sales in this price range than we have in several years with an increase of 46.5% over 2016. We closed on 47 homes in October. This increased closed sales could be directly impacting the months supply of this price range. It is also entirely possible that we are seeing the larger number in closed sales because we are seeing more new listings that have in the recent past. As can be seen from this article from RISMedia, DFW is leading the way in transforming real estate in every price range. An increase in closed sales in this price range could be a direct effect this phenomenal.