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. Overall, this price range in Fort Worth has been similar to the overall market with homes staying on the market longer and more homes available each month as the number of closed sales decreases slightly. Sellers and buyers will need to confer with their Realtor to go over strategy in this changing market.
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 July 2019)
Homes for Sale
Two Hundred and seventy two homes were for sale in June 2019 as compared to 251 the year before and 224 in 2017. This number was a 24% increase over a two year period.
What this means for sellers: As with the entire region, this price range in Fort Worth has seen more homes for sale over the last two years. Sellers should take note of this increase as it means more competition for them. Listings agents should outline their marketing plan to you clearly as getting the word out is even more important in a competitive market. Marketing plans should include the Realtor’s ideas for traditional (yard sign, flyers, open houses) and new media (social media, online ads).
What this means for buyers: Buyers should be grateful that there are more options in this price range for them. In the past seven years, it has been difficult for buyers of this price range due to the lack of inventory. With more homes for sale, buyers need to readjust their thinking about rushing into a sale. Instead, buyers should carefully consider homes that closely match their wish list. Buyer’s agents should be more versed in their buyer’s wishes for a home. Since buyers can be more picky, buyer’s agents should capitalize on finding homes to match their customer’s needs.
We saw a decrease of 6.2% of new listings in this price range for Fort Worth since this time last year. In 2018, we experience a 28% increase in the number of new listings from the low level of 88 homes in 2017.
What this means for sellers: Sellers should look upon this slight decrease with caution as this could be a deviation from the past few months where new listings went up in number. Of course, this price range has always struggled with their inventory numbers. Sellers should be approaching their strategies the same as before with aggressive list prices and great sales presentation.
What this means for buyers: CNBC had a doom and gloom post about how inventory for buyers will only get worse as the year progresses into the final two quarters. Although, this might be a bit of an early alarm, you can’t deny that buyers are starting to see less options as new listings decrease in this price range. Buyer shouldn’t panic quite yet, but they might want to readjust their thinking a bit if we get a repeat of previous buying seasons.
Average Pct of Original List Price
This price range in Fort Worth have seen steady numbers in this statistic. Sellers have averaged getting around 97% of their original list price for the last three years with only a slight uptick this year.
What this means for sellers: Sellers are getting their asking price. With this kind of consistency, sellers can go into the market knowing that anything less than 97% of their list price is too low. With this kind of assurance, sellers should feel more comfortable with turning down low offers as a buyer will come along with a price closer to their original asking price.
What this means for buyers: Buyers have not had a lot of inventory in this price range for several years now. With low inventory, the negotiation power of the buyer falls significantly. Sellers can just wait for another offer to be made closer to their asking price. If a buyer is serious about a property, they need to get above this 97% plateau to gain the interest of the seller.
After seeing a dramatic fall last year in the month supply (from 5.5 months to 4.7 months), we saw a slight uptick to 4.8 months this year.
What this means for sellers: Inventory is up slightly because homes are not selling as well as they did last year. However, the supply of homes on the market has seen 12% decrease in two years. Hopefully, this means sellers will have less competition in the coming months. Remember, a healthy market is considered to be a six months inventory so we are still a ways off from reaching this milestone in this price range.
What this means for buyers: Buyers should take this statistic as cautionary annotate about the current health of this price range. Even though, we are seeing an uptick in inventory, with less new listings on the market, it just means homes are not selling as quickly. Buyers should continue to look at multiple homes before making a decision as it is not time to panic.
After seeing a huge increase in the number of closed sales last year(143%), we came back down to earth this year with only 57 homes closing in this price range in Fort Worth last month. It is still more than 2017 when we only saw 30 closed sales.
What this means for sellers: Sellers shouldn’t get too alarmed about the 21.9% decrease in closed sales. With such a large increase the year before, it only makes sense the number would be contained into the new year. Still, sellers should see the decrease as a possible sign that the market might be slowing down for them, and appropriate steps might need to be taken by the listing agent.
What this means for buyers: Buyers should see this decrease as good news as they might have to rush out to every new listing to see it. Homes are not closing as quickly so that means buyers have time to shop a bit before putting down an offer.