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 September 2018)
Homes for Sale
The number of homes for sale in this price point in Fort Worth has actually grown over the last two years to 209. This 45% increase in indicative of the larger number of homes coming on the market across all price points across the region. Sellers will need to realize that with more options for buyers, the number of offers they will receive will no doubt go down. It should be a strategy discussion you have with any listing agent. If the listing agent does not seem to have any plans beyond the normal methods utilized over the last four years during a strong seller’s market, you might want to reconsider. A good question to ask them, “What are you marketing plans for my home now that the market has more homes for sell?” If the agent can give you some good tactics to use in weaker seller’s market, you should consider its a good sign this agent knows how to handle selling your home.
We saw 954 new listings in this price point in Fort Worth in August 2018, which is a 57% increase from this time two years ago. It seems that sellers have finally realized we are in a seller’s market so many more are putting their homes up for sale. For buyers at this price point, it means you can probably drive around any neighborhood and see numerous “for sale” signs. Buyers should be more selective on their offers and be sure the property marks off everything on their list. Don’t make an offer on it it if it doesn’t work 100% for you. There will be other options.
Average Sales Price
As can be seen from the graph below, the average sales price has stayed steady around $440k for the last three Augusts. With more homes coming on the market and the same number of buyers, the demand is not as strong as it has been in the past. You want to discuss with your listing agent the exact sales price to list the home. If you price it right, even with more competition, you should get a lot of interested parties, especially if you present your house well to potential buyers. You want to have the buyer easily visualize your home as their own. Be sure to take out any personal mementos unless it adds to the decor of the home. As far as placement of furniture, a stager can recommend proper arrangement. If you don’t to pay a stager, you need to make your rooms as large as possible, which is more attractive to the eye of anyone who walks into the room. You should also be sure to give each room their appropriate function. A dining room should always be a dining room.
Average Sales Price per Sq Ft
As with average sales price, the average per square foot has remained constant as well with a slight increase of 6% over the last two years. Buyers will no doubt be thrilled that the price statistics have flattened in this price range. With the increase in mortgage interest rates, you can afford less of a home over time. With no significant sales appreciation in this price range, the higher mortgages are easier to take than in previous years. As we move closer to being a buyer’s market, buyers will be able to offer lower sales prices. There is no longer a need to lead with the most aggressive offer. It is actually be better to go in lower than you are willing to pay so you have some wiggle room to negotiate with the seller.
In times where you are seeing a transition in the market, you can sometimes get some statistics that do not make a lot of sense. For example, in this price point in Fort Worth, we have actually seen our months supply of homes go down from 4.9 to 4.2 months. It is difficult to rectify this statistic with the ones we have shared thus far in this Fort Worth Market Update. However, the takeaway from this statistic for sellers is that we have enough homes for sale in this price range that it would take four months for all the homes to sell out completely. This months supply is much larger than the 1 or 2 months we have seen in other price ranges. You are going to have more competition in this price range so be sure your listing agent has a concrete plan on how to make your home stand out in the crowd.
We saw an increase of 32.9% in closed sales in this price range since this time last year. With 590 closed sales in August, buyers need to be sure to consider an alternative view of the current market. With this view, the market has more options, but these options are selling quickly. In this line of thinking, buyers don’t need to slow down and instead get in their offers quickly and close to asking. Be sure to discuss all options with your buyer’s agent, because with statistics telling multiple stories about the market, you need to be sure to pivot quickly if you find a home that really appeals to you. Please also remember that statistics give a broad picture of the overall Fort Worth market in this price point. Location still might dictate how quickly one moves on a house and the aggressiveness in the offer made to the seller.