Welcome to the next edition of the Fort Worth Market Update. For this update, we will be looking at homes over $500k. Overall, luxury properties have seen a bit of a slowdown over the last few months with homes staying on the market longer and fewer buyers looking for a home.
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 August 2019)
Homes for Sale
The number of homes for sale in the luxury price point has remained virtually unchanged from last year(410) to this year(407). In 2017, we had 9% less homes for sale with 374.
What this means for sellers: Luxury sellers are in a different category than the rest of the market. At this price point, you will find different statistics than in other market segments. Sellers of luxury properties need a Realtor with experience in the market with knowledge on how to market the home. With homes not moving as much this year, it is extra important for sellers to interview several agents before selecting one.
What this means for buyers: Buyers should be happy with this recent trend of more homes being on the market. The luxury market has always been limited in the options available especially at the higher price points. With more choices, buyers can wait for the right property before making an offer. Buyers should be on the lookout for properties that have higher days on market as they might sellers have reduced the initial list price.
We saw nearly a 15% increase in the number of new listings from this time last year with 117 new listings as compared to 102 last year. In 2017, we had less than a hundred new listings at 97.
What this means for sellers: What does it mean to have the same number of homes for sale, but an increase in the number of new listings? It means sellers will have their properties on the market for longer than we have seen in the recent past. With luxury properties, the listing agent should have presented a marketing plan to last several months. Sellers should be on top of the listing agent to be sure the marketing plan is being implemented.
What this means for buyers: Once again, buyers should be pleased with these numbers. With substantial new listings every month, buyers should be able to find something that matches their “wish list.” Most sellers will have marketing material at the property for buyers. Buyers should look over this material closely to see if there is some useful tidbit of information disclosed about the property. Open houses should be regularly attended to see as many properties as possible before making a decision.
Average Pct of Original List Price
For the last two years, luxury sellers have been able to 94.3% of their asking price, which is more than in 2017 when sellers were only getting 92.9% of original asking price.
What this means for sellers: Sellers are actually seeing more of their list price the last two years than in the previous year. With the tighter market, one would think it would be lower. It should be remembered that in markets in transition, you will sometimes get some statistics that don’t make a lot of sense. Sellers should use this statistic as a guide on the market’s willingness to pay full price for listings.
What this means for buyers: Buyers should be looking to make offers no lower than this statistic’s percentage. Each situation is different so one might be justified to offer closer to list price for the seller to consider the offer. If the buyer really wants the property, this statistic is a great guide for the bottom price the seller might consider for the property.
We didn’t see any change in the months supply for luxury properties. We saw a 7.6 months supply for the last two years. In 2017, it was a 8 months supply.
What this means for sellers: The luxury market has always been more saturated than other price points. Because of this, the number of months it takes for the inventory to turn over is much higher. We are in a buyer’s market in luxury properties for the last three years. Sellers should look at this high inventory number as another reason to have a solid plan in place on the sale of their property. If the plan doesn’t seem to be working, the listing agent should be encouraged to revamp it to adjusting times and market conditions.
What this means for buyers: As it has been written throughout this post, buyers should be loving the options available for them right now. Of course, if it is taking this long for properties to sell, buyers are not finding any that match their specific situation. Are the prices too high? Are the properties presented poorly? The reasons for luxury homes not selling could be one one of many, but one truth rings true in a buyer’s market, buyer’s negotiation power increases dramatically. Buyers need to take advantage of this market!
Closed sales were down 6.5% from this time last year. We had 58 closed sales in July 2019 while 62 closed the year before. In 2017, we had a small number of closed sales (49) so even this year is about 20% higher than two years ago.
What this means for sellers: With a 117 new listings and only 58 closed sales, sellers need to realize that their competition is going to be increasing as this buyer’s market continues forward. Sellers should be certain their list price is where it should be and reevaluate the presentation of their homes to buyers. Are they doing everything they can to make sure the house look as attractive as it can?
What this means for buyers: There really isn’t much more to write here about how fantastic buyers have it right now in this market. If you left the market for lack of inventory, you should come back. The mortgage rates are attractive and sellers are going to be ready to work with you if you are serious about purchasing their home. Take advantage of it!