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. Overall, the 2019 market is still unknown, but it has picked up in the last parts of January. Time will tell if we have another great year for real estate in Fort Worth.
Our methodology for this Fort Worth market update is straightforward. We use the North Texas Real EstateInformation 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 February 2019)
Homes for Sale
We saw the number of homes for sale in this price continue to increase over time with 217 homes in January. In 2017, the number of homes on the market was 128 so we have seen over a 50% increase in the number of homes for sale in this price point in two years. Our Fort Worth Market Update for this price range actually had higher total (237), but the percentage increase was lower. No matter how you look at it, we are seeing more homes for sale right now in this price range than we have in several months.
What this means for sellers: As with many of Market updates where homes for sale has seen an increase, we push sellers to keep their properties in prime shape for showings as competition will be heavier than in the past. You also have to price your home correctly. Sellers should makes sure their listing agent finds sales comparable from the past six months (90 days preferable) and try to find at least three active properties. In this market, overpricing your home can lead to extra days on market which leads to buyers questioning why the property is not selling.
What this means for buyers: We probably resemble a broken record for our steadfast readers of these Fort Worth market updates. Buyers can relax a bit in this price range with homes because you have more homes to consider before making an offer. We have seen this trend in many of the price ranges, where homes for sell are increasing across the board. However, it should be noted that agents in the field have seen signs of a more active market with some craziness afoot if the house shows well and is priced correctly. For example, a south Fort Worth duplex saw 33 offers in one day due to its price and it showing well. Be aware of more choices but don’t let the habits of the past to evaporate completely if the property is a good one. Buyers should get to a showing quickly and get an offer to the listing agent.
New listings virtually stayed the same from this time last year going from 63 properties to 64 properties. In 2017, we saw 48 new listings. This trend holds true from the last Market update as well where the number of listings only went up 1%. If you spread that over 30 days, you are seeing about 2 new listings a day right now in this price range.
What this means for sellers: Homes appear to be staying on the market longer as we are seeing more homes for sale, but hardly any new listings as compared to the previous year. In looking over average days on market, this seems to be the case as homes are generally staying on the market for 22 days longer. Sellers should speak to their listing agent about when they will start to adjust the sales price. Most listings agents will be agreeable to putting a statement in the listing agreement that the sales price will drop by a certain amount after a set days on market has elapsed. Even though, it is important to price your home correctly, sellers need to also realize that sometimes the dropping the price might be the only way to get renewed interest in the home.
What this means for buyers: With this statistic, buyers should set their expectations to only see one or two listings a day. With countless other buyers looking at the same two listings, any new listing coming on the market should be considered immediately(as compared to homes stagnant on the market). Buyer should inquire with their agent if the property is priced correctly. If it is and it looks nice, most likely the house will get a lot of attention from buyers. Offers should be made quickly as well with some aggressive terms to get the seller’s attention.
Average Sales Price
The average sales price in this range saw a slight increase to $440,457, which is 3.4% increase over the 2017 sales price. From the last Fort Worth Market update in this price range, we saw the price drop $6k from $446K.
What this means for sellers: Sellers need to be using this statistic as a guide on where most properties are selling in this price range. If your have a house near the average, you know that you will be competing with more sellers than if you had one higher or lower than the average. Sellers should consult with their listing agent to find out exact numbers for their neighborhood. Depending on the competition, you might need to ramp up your tactics (reduce the price, give buyer agent a bonus, etc) to give yourself an advantage over the other properties.
What this means for buyers: Like sellers, buyers should look at this statistic as a guide on how many options they will have within their budget. Buyers who have less options will need to move more quickly on homes as you will have more buyers going after the same homes. Buyers could also make their offers more aggressive by offering more incentives like paying for the title policy or survey.
We saw a 8% increase in the months supply of homes in this price range. This means, it will take until the end of April for all the homes currently for sale to sell out to the buyers (hypothetically). From 2017, it would have taken until early April.
What this means for sellers: Sellers are seeing homes lasting longer on the market with added competition. With all statistics seemingly pointing towards a slower market in this price range, listings agents should have reached out to their sellers, with a plan to reach out to specific market segments looking for homes at this price point. For example, younger families who might belong to a social organization like rotary with enough income to purchase homes at this price level. Niche marketing might be the way you get your home out to buyers who would be interested in the property.
What this means for buyers: Buyers should rejoice that homes are taking longer to sell. Homes will be around longer for showings and possible offers. If a house is not selling as fast, sellers get more prone to negotiate on the list price. Buyers will realize a better value for their investment in markets that take longer to sell out their inventory.
This price range only saw 28 closed sales in January 2019, which is actually one less than this time last year. We saw 20 closed sales in this price in 2017. Forty-seven homes closed in October 2018.
What this means for sellers: No will deny that more homes need to close in this price range and 28 homes closing is dismal. However, sellers should keep in mind that January is traditional a slower time for the market and any listing agent from the field will tell you that the activity increased tenfold towards the end of the month.
What this means for buyers: Buyers need to consider this close rate (and all the other favorable statistics) as they decide what to offer on properties in this price range. Market indicators seem to point towards sellers being more flexible with their list prices and being more flexible in negotiations. Buyers should offer lower prices and might even request the seller make more repairs after an inspection is done.