Welcome to the next edition of the Fort Worth Market Update. For this update, we will be looking at luxury homes, which are classified as $500k or higher. Luxury real estate has a market unique in itself so you might see some numbers here that are very different.
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 November 2018)
Homes for Sale
For this price range, we are looking at luxury properties over $500K so it covers a wide range of price points. Collectively, we had 380 luxury properties for sale in Fort Worth in October 2018. This year’s statistic is very close to the previous two years with only 19 properties making up the difference between this year and last year (when we saw 361 luxury properties). The most expensive luxury properties is in the Baldridge House off of Crestline, close to Camp Bowie in west Fort Worth. If you want this property, you have to buy it for just under $8 million. Luxury buyers and sellers should be accustomed to the number of homes for sale in Fort Worth as the statistic indicates, very little has changed over the last three years. Average days on market for the homes for sale is 147 with one being on the market for over 1500 days. At these price levels, the market will usually move much slower than other sectors.
Buyers should be rejoicing with this statistic as we have seen a 38% uptick in the number of new listings since this time in 2016. It is still low compared to the rest of the market, but luxury homes came on the market at a pace of 80 or more properties a month, which is up from 58 two years ago. Sellers should take note and work their realtors to ensure that all marketing avenues are being pursued. In fact, your realtor should have presented a marketing plan to you before the house came on the market. Be sure to hold the agent accountable to follow this plan as marketing your listing will do more than anything else to get the property sold. As with any listing, you should also be prepared to spend a little to get the home presentable for showings. You need to work with your realtor to discuss steps that can be taken to ensure the house shows as well as possible. Finally, you should always work with your realtor to come up with the right list price. At this level of housing, most luxury listing agents will come back to make a presentation on list price backed with data/information to back their list price recommendation. It is in your best interest to listen to your realtor on list price if you wish your home to sell within an acceptable amount of time.
Average Sales Price
As with any of GET REAlty’s Fort Worth market updates, you should take the average sales price for what it can tell you in broad terms, especially with luxury properties because of the wide range of prices. From this month’s statistic, we know that a majority of luxury homes will be in the $800k range. This number has actually gone up over ten percent in the last two years, which could be an indication that more expensive luxury properties are coming on the market. Buyers should set their expectations on how many options to see based on this statistic. If you have a budget of $3M, you might have limited options. Buyers with a budget in the $800k range should have many more properties to see before making an offer.
Average Sales Price per Sq Ft
At first glance, this statistic might seem to be off since it is so much lower than one would expect for luxury homes. However, the simple explanation for the lower averages per sq foot are that bigger homes are being listed. It could also be that the range of luxury homes is so great that this statistic is off. As with average sales price, however, it can serve as a guide for buyers and sellers as they plan their real estate strategies. Realtors use this statistic as well. One of the reasons many realtors will come back to do a separate list price presentation is because it takes some research to find homes that conform with each other to make good comparison properties. The wide variety of luxury homes on the market can make finding comparable homes a very challenging task for any realtor. The average square foot price is a good way for realtors to check their thinking on an appropriate price for their luxury listings.
With months supply, we have seen the number of months decrease over the last two years by nearly 20 percent. Months supply means the number of months it takes for the entire inventory to sell out to the number of buyers on the market. Overall, the area has been in a seller’s market for several years now as it has taken less than six months for the inventory to sell out to buyers. With luxury homes, it is a buyer’s market as their are more buyers than sellers. However, with the recent decline in the months supply, sellers should be optimistic that some buyers might be getting anxious over the lack of properties on the market. Usually, when buyers get to feeling pressure, they will make compromises to get a property.
As one might expect with luxury properties, the number of homes that close every month is very low. This October, we saw 30 homes close which is almost 20 percent lower than what we saw in 2016. Buyers should be happy to see this statistic low as it means that they might have homes on the market for longer. It should be noted at this point that if you do close on a home in Fort Worth, the Treasury Department is making you disclose more about the sale as they work to hamper money laundering schemes. You can read all about it here.