Welcome to my monthly ramblings about real estate in Fort Worth, specifically in my target area of the Alliance Corridor (as can be seen by the picture below). The post-labor day rush has begun. Most people will tell you that we have seasons in realty, but these seasons don’t fade like in the past. We have a surplus of buyers looking for a home and not enough homes to show them.
Lately, I have shown a lot of homes that do not need to be in the market at all, at least not in the condition and price they are listed. With such a low inventory, it seems the few remaining homes do not show well. I cannot emphasis enough how staging a home makes a difference on how a home is seen. If I can show a home that is clean, well-kept up and clutter free, my buyers get much more interested, much more quickly. I have shown more homes that are very poorly put together in presentation. None of buyers are going for it. I also have been seeing a lot of homes recently that seem to be mid-flip. These homes exist in older parts of town and you can tell the investor got in over his/her head very quickly, because it seems the rehab work stops before it can be completed. These sellers will go ahead and mark their properties at market rate, hoping this crazy market will propel a buyer to scoop it up. It usually doesn’t work. Buyers are much more astute about these things than they used to be. It is not easy to fool anyone about real estate these days. Investors would be better served to fix structural defects, put in new floors and paint the walls. In other words, get the home to a decent condition, price it accordingly and then list it. It simply does not work if you put in funds to sell a home at full retail when it is obvious work still needs to be done to it.
I also have to emphasize that real estate in Fort Worth should not scare you. You can still sell a home, buy a home or invest in real estate. You just have to set your expectations accordingly. Let’s chat if you are looking to do any of these.
My Coverage Area
August Inventory of Homes
As you can see from the numbers, it continues to be a seller’s market. As a reminder, this statistic shows how long it would take, in months, for the current inventory of homes to sell out. A healthy market is 6 where the number of homes on the market is balanced well with the number of buyers. We stand at 2.0 and have been below six for three years now. If you get your home on the market, you will be one of the few. Buyers should set their expectations accordingly as well.
August Median Days on Market
Homes continue to sell very quickly on the market, but things have slowed down a bit. Six months ago, you could expect a decent home to sell in one to three days. This still happens for the homes that show really well and are priced correctly. However, my experience of late is that a buyer can be a little more thoughtful in deciding to move on a home, but only by two to three days. You still can’t wait a week before deciding to put in an offer on a home and then expect it to still be there. Sellers should rejoice at the slightly slower pace as they can now have some time to get their next home before their current one sells.
August Median Sales Price
This is the statistic most people want to know. How much is my home worth? Sales data shows that home prices have escalated up by 10 percent from this time last year. Economists are still harking that these prices are too high and will level off soon enough while others disagree. Despite which expert you follow on this, it is important to realize that real estate is cyclical so this market will turn eventually. Sellers don’t need to wait. I encourage you to get it on the market sooner versus later.