Welcome to the next edition of the Fort Worth Market Update . For this update, we will be looking at homes under $150K In this price point, we will see some lower numbers than other Fort Worth Market Updates due to lack of inventory in this price range.
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.
We are changing a few things about our Market Updates. Some of the statistics we have been highlighting are not really useful for consumers so we have taken them out of the report. Average sales price will no longer be featured. If you are curious about this statistic, you can look at the monthly broad market update I do, where the statistic is much more relevant. In its place, we have added the statistic, average percent of original list price. We feel this statistic will be much more useful to buyers and sellers.
Our second change is adding this price range of $150K or lower. We realized that many investors would find the data we convey here useful for their real estate businesses. Investors, how buy flips or rentals, should find this information handy to keep around as they build the annual strategy.
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
In February 2019, we saw a total of 151 homes for sale under $150K. This is a 56% reduction from 2017 and 28% lower than last year.
What this means to sellers: With so little homes for sale in this price range in Fort Worth, it is important for sellers to put some effort into getting their properties ready for sell. You don’t have to do costly upgrades and repairs to make your property more appealing to buyers. Many buyers looking in this price range will not expect a property in perfect shape, but will expect a clean and sanitary one. Sellers are advised to do a deep cleaning of the property before putting it on the market and be sure to replace light bulbs to make the property as light as possible. This practice should continue during the length of the showings.
What this means to buyers: Buyers in this price range should expect to move fast to see properties as they come on the market. The number of buyers shopping in this price range is large, and nice, well-kept homes will get a lot of attention. Realtors should be consulted about offers as buyers will need to be aggressive in their terms so the seller will select their offer over the others made on the property.
The number of new listings in February 2019 was 113, which was down over 60% from 2017 when we had 208 new listings added. Last year, we had 136 new listings in this price range.
What this means for sellers: With fewer properties on the market, sellers will have some stiff competition. One of the most competitive strategies sellers can adopt is to make sure to price their home according to the market rates. You can do this by having a look at the sales data in your subdivision within a half mile of your current home. This sales data can help direct how you price your home. If you overprice the property, you will most likely see very few buyers looking at your property.
What this means for buyers: New listings are great for buyers in this price range since the number of homes is dismally low. With only 113 new ones however, the idea of looking at several options before making an offer might not be the best approach. As a buyer in this price range, you have to be flexible on your want list and attempt to find a property that meets a majority of them. If you wait to find the perfect house, you will probably be looking at a lot of homes before you find one (if ever!).
Average Pct of Original List Price
The sellers in this price range are getting their list price for the most part with homes selling at 98.6% of asking. This is down about 1% from 2017/2018, where we saw sellers getting a 100% of their list price.
What this means for sellers: With homes in this price range, sellers can expect buyers to pay the list price. With this in mind, sellers should be wary of low offers. If a the offer price is below 98% of list, sellers should counter higher. Of course, overpriced properties or fixer uppers are another story but hopefully sellers will work with their listing agent to price their homes correctly for the current market.
What this means for buyers: Buyers should be aggressive in their offers in this price range. Luckily, buyers are seeing some relief from the previous two years when sellers were getting a 100% of their list price. However, the offers should be close to asking, not going below 98% of asking, if you want the sellers to seriously consider your offer. Sales comparisons will help your buyer’s agent to decide if the property is overpriced.
In February 2019, we saw a monthly inventory of 1.4, which is considered a very strong sellers market (above 6 months is considered a buyer’s market). This number did not change from 2018 and only has gone up 7% from 2017.
What this means for sellers: Sellers should be rejoicing the inventory is so low in this price range. It means the current inventory of homes will only take about a month and half to sell out to the buyers looking to purchase a property. Sellers should still take all the steps necessary to present their homes well to buyers and price the property correctly. Buyers will respond more quickly to homes looking good and priced correctly.
What this means for buyers: The market is very competitive based on the months supply. Buyers should work quickly and coordinate with their buyer’s agent to get out to properties as quickly as possible after it becomes available for showings. With the busy season starting, this becomes even more important as more buyers will start to look for homes.
We saw 112 closed sales in this price range in February 2019. This number is down slightly from last year when 115 properties closed. In 2017, 30 percent more homes closed at a total of 167
What this means for sellers: In this price range, we have as many new listings(113) as we do closed sales (112). Sellers can put their homes on the market feeling confident it will find a buyer. As the Spring season heats up, sellers should expect a lot of showing activity so should work with their listing agent to set up guidelines on when showings can take place in their home. Be warned that being too restrictive on showings schedules will most likely keep your home on the market longer than if you provide easy access for buyers.
What this means for buyers: Buyers are facing a tough chore of finding options to see in a market that adds as many as it sells every month. Buyers should not give up hope and clearly explain to their Realtor what they want in a house so they can quickly find properties.