The Fort Worth housing market in 2023 is shifting into a buyer’s market. This means that the supply of homes for sale is greater than the demand for homes. This is a change from the past few years when the Fort Worth housing market was extremely competitive and seller-friendly.
There are a few factors contributing to the shift to a buyer’s market in Fort Worth. First, mortgage rates have increased significantly in 2023, making it more expensive to buy a home. This has reduced the demand for homes, especially among first-time homebuyers.
Second, the supply of homes for sale has increased in Fort Worth. This is due in part to the fact that some sellers who were waiting to sell their homes during the pandemic are now putting them on the market. Additionally, some investors who are facing rising interest rates and other economic challenges are selling their Fort Worth properties.
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Fort Worth Housing Market Report September 2023
The September 2023 Housing Report for Fort Worth and Tarrant County provides a detailed snapshot of the current housing market trends by the Greater Fort Worth Association of REALTORS®.
Market Trends
The housing market in September 2023 is characterized by several notable trends and developments:
1. Rising Inventory: Inventory climbed to 2.5 months in Fort Worth and Tarrant County. According to the Texas Real Estate Research Center at Texas A&M University, 6.5 months of inventory would represent a balanced market. The steady increase in inventory is providing more options for homebuyers.
2. Decline in Closed Sales: Closed sales are down by 8.9 percent in Fort Worth and a more significant 17.4 percent in Tarrant County, compared to September 2022. This decline in sales activity is a key indicator of the challenges in the current market.
3. Mortgage Rate Challenges: Mortgage rates have been a significant roadblock for many prospective homebuyers. Mortgage rates rose for the fifth consecutive week, with a 30-year fixed-rate mortgage averaging 7.57 percent. This has led to a surge in adjustable-rate mortgage (ARM) applications, comprising 9.2 percent of total mortgage applications.
4. Homebuyer Pessimism: The housing market is grappling with record-high levels of homebuyer pessimism. Fannie Mae’s National Housing Survey revealed that 84 percent of Americans believe it is a bad time to buy a home. High mortgage rates are a primary reason behind this sentiment.
As we look to the future, the market’s potential for a rebound exists, driven by pent-up demand and the anticipation of decreasing mortgage rates. The real estate industry, along with prospective buyers and sellers, will closely monitor these developments in the coming months.
Fort Worth Housing Market Forecast 2023 & 2024
The Fort Worth housing market has garnered significant attention due to recent changes in property values and the time it takes for homes to go pending. According to data through September 30, 2023, provided by Zillow, the average Fort Worth home value currently stands at $305,461. Notably, this value has decreased by 4.9% over the past year, indicating a shift in the market.
Swift Turnaround Time
One standout characteristic of the Fort Worth housing market is the rapid pace at which homes transition from listing to pending status. On average, it takes just 18 days for a property in Fort Worth to go pending. This quick turnaround time underscores the competitive nature of the market, where buyers must act swiftly to secure their desired homes.
Key Market Metrics
To gain a deeper understanding of the Fort Worth housing market, let’s look at some key metrics as of August 31, 2023:
- Median Sale to List Ratio: The median sale-to-list ratio stands at 0.999, indicating that homes are typically sold very close to their listing price.
- Percent of Sales Over List Price: A significant 28.9% of sales in Fort Worth were closed above the list price, illustrating the competitive nature of the market.
- Percent of Sales Under List Price: Conversely, 47.6% of sales occurred under the list price, suggesting that buyers still have opportunities to find bargains in Fort Worth.
- Median Days to Pending: As of September 30, 2023, the median time for a property to go pending is 18 days, reinforcing the idea that buyers need to act quickly.
Fort Worth MSA Housing Market Forecast by Zillow
The Fort Worth housing market is an integral part of the Dallas-Fort Worth (DFW) metropolitan area, which is one of the fastest-growing regions in the United States. The DFW metroplex includes cities like Dallas, Fort Worth, Arlington, and several others, making it a thriving hub for real estate activity.
While the provided data focuses on Fort Worth specifically, it’s essential to recognize that the housing market in this region is interconnected. As per Zillow’s forecast for the Dallas, TX metropolitan statistical area (MSA), which includes Fort Worth, there are projected changes in home values.
The market is expected to see a modest increase in home values in the coming months, with specific data points as follows:
- As of October 31, 2023, a 0.1% increase in home values is forecasted.
- By the end of December 2023, home values are expected to remain stable.
- A more significant rebound is anticipated by September 2024, with a projected 1.4% increase in home values.
The Fort Worth housing market, as part of the DFW metro area, is dynamic and competitive, with rapid property turnover. Buyers need to act swiftly, and Zillow’s forecast suggests a moderate growth in home values in the near future.
Should You Invest in the Fort Worth Real Estate Market?
Population Growth and Trends
- Fort Worth has been experiencing significant population growth in recent years, making it an attractive destination for real estate investors. The city’s population growth can be attributed to factors such as job opportunities, affordability, and a thriving economy.
- With its strategic location in the Dallas-Fort Worth metroplex, Fort Worth benefits from spillover growth from the larger metropolitan area, contributing to its sustained population increase.
Economy and Jobs
- Fort Worth boasts a diverse and robust economy with key sectors including aerospace and aviation, healthcare, manufacturing, and logistics. The presence of major corporations, including Lockheed Martin and American Airlines, provides a stable job market.
- The city’s job market has been expanding, creating a strong demand for housing. This employment growth is a positive indicator for real estate investors, as a strong job market is often correlated with a healthy housing market.
Livability and Other Factors
- Fort Worth offers a high quality of life, with a lower cost of living compared to many other major U.S. cities. The city is known for its cultural amenities, excellent schools, and family-friendly communities, making it an appealing place for residents.
- Fort Worth’s affordability and diverse housing options cater to a broad range of potential tenants, which is advantageous for real estate investors seeking a diverse rental market.
Rental Property Market Size and Growth
- The rental property market in Fort Worth is substantial and continues to grow. The city’s expanding population and job market have created a consistent demand for rental properties.
- Rental properties in Fort Worth offer investors the opportunity to generate passive income and the potential for long-term appreciation of property values.
Other Factors Related to Real Estate Investing
- Fort Worth’s real estate market is known for its stability and resilience. Even during economic downturns, the city’s housing market has shown relative strength.
- The city’s regulatory environment is favorable for real estate investors, with landlord-friendly laws that provide protection for property owners.
- Fort Worth’s real estate market offers a variety of property types, from single-family homes to multifamily units and commercial properties. This diversity allows investors to tailor their portfolios to their preferences and investment goals.
- Fort Worth is strategically located near major transportation hubs, including DFW International Airport. This connectivity enhances the city’s desirability as a place to live and work, further benefiting real estate investors.
Thus, investing in the Fort Worth real estate market presents a compelling opportunity for investors. The city’s population growth, strong economy, livability, and rental market size all contribute to its attractiveness. With a diverse range of property types and a favorable regulatory environment, Fort Worth is a destination worth considering for real estate investors seeking long-term growth and stability in their portfolios.
Sources:
- https://www.zillow.com/fortworth-tx/home-values
- https://www.gfwar.org/housing-report
- https://www.redfin.com/city/30827/TX/Fort-Worth/housing-market
- https://www.realtor.com/realestateandhomes-search/Fort-Worth_TX/overview
