Fort Worth Housing Market Forecast 2022
Fort Worth, Texas, is another area in Texas that saw a drastic boom in both population and the economy throughout the pandemic. As job losses and restrictions plagued half of the country, many sought housing in areas that coincided with their beliefs. They needed a secure economy to provide for their families. Many people found this in Texas.
It resulted in a booming economy and low supply in many areas, including Fort Worth, Texas. This led to higher home prices. Inflation slammed the economy, further increasing the price of houses in many Texas housing markets. However, it might finally be slowing down enough to give buyers and real estate agents a much-needed breath of fresh air.
Housing Market Prices in Fort Worth
Fort Worth housing prices remain high. There was almost no change from June 2022 to July 2022. Instead, the increase in home prices was a mere .3%. The price of houses increased by an estimated $1,250.
The current median price for a house in Fort Worth, Texas, is $369,320. That averages out to approximately $186 per square foot.
Price fluctuations have changed based on the size of the house as well. Single-family detached homes with at least two bedrooms are more popular among those purchasing homes when compared to other housing options, including townhouses, condos, and one-bedroom houses.
Single-family homes with 2+ bedrooms saw increases month over month. Two-bedroom houses saw the greatest increase at 3.6%.
One-bedroom homes, which are not in high demand, saw a decrease in the price of 10.5%.
Year over year, there was a price increase of 17.5%.
Last year, most houses sold at least 100% of the list price. This year has seen that decrease, with only 55.6% of houses sold at or above the list price.
Over 1,000 houses currently for sale have decreased in price due to them still being on the market.
According to the Greater Fort Worth Association of Realtors, prices in July 2022 have decreased compared to those in May and June.
Fort Worth Real Estate Market Trends
Now that the mass migration of transplants to the Lonestar state has slowed, the housing supply has increased. From June 2022 to July 2022, the Fort Worth real estate market saw an increase of 10% in the number of houses for sale.
Year over year, the number of homes sold in the Fort Worth market decreased by 22.4%. The number of houses increased by 40% YoY.
Houses spend an average of 18 days for sale before getting an offer accepted, two more days than they were spent on the market the previous year.
The housing supply is slowly increasing, which can lead to greater stabilization. It’s up to 1.9 months. In July of 2021, the housing supply was only 1.3 months.
Although it seems like houses might not be selling, they are. Houses are selling slower and might not sell for the list price, but they are selling. Real estate companies that buy houses in Fort Worth are still buying houses, just a lower prices than normal, in order to reduce their risk on the backend.
Buyers have a little bit more power to negotiate. Those not interested in the overheated playing field are cautiously approaching the Fort Worth real estate market to see their options.
Mortgage rates continue to fluctuate, with buyers being cautious about when and if they buy. During the first two weeks of August 2022, rates dipped below 5%. Then, they shot up again by 5.22%, according to Freddie Mac.
The Housing Forecast
Many people are concerned that it has reached a bubble and will burst soon. Those who remember the recession of the earlier 2000s cannot help but have flashbacks. However, that is not happening in the Fort Worth housing market.
Instead, these are signs of it correcting itself. When many people moved to Texas, it cut the home supply to the point that it was almost non-existent. This imbalance in supply and demand led to a surge in prices.
Now, the housing supply is steadily increasing. This is leading to the market balancing out again.
Although prices are still increasing, the price increases are slowing down quite a bit. If the supply continues to increase, the pace at which prices rise will continue to decrease. Eventually, buyers will no longer see drastic increases in prices. So, if you need to sell a home for cash in Fort Worth to a cash buyer, look for investors who can close quickly, so that the home doesn’t sit on the market. But if you do sell directly to a real estate investor, make sure they a ready and able to close the deal or bring in an investor that can close the deal.
Not only will the buyer’s not be forced to deal with overvalued Fort Worth home prices, but they will also have more power in negotiations. More homeowners are currently negotiating prices below the list price, and buyers expect to see this trend continue throughout the rest of the year.
The home supply will increase next year to work towards a healthy price level. A healthy market has a supply of six months. However, if Fort Worth continues to show the same housing trends that it currently is, a healthy market is still a few years away.
However, that doesn’t mean buyers must wait a few years to purchase a house. Instead, they can prepare by getting finances together and learning what to look for in a real estate agent. They can also start negotiating with current homeowners to see if they can find their dream house at their dream price.
Sellers can continue to enjoy the benefits of high prices and multiple offers for now, but that time will end within the next few years. Now is not the time to hang onto a house, hoping to sell it for 150% of the list price in the future.
The Fort Worth real estate market is continuing to cool off. While this is great news for those waiting to purchase a house, it’s not the best news for sellers. Homeowners that have a house listed will wait longer to sell and might be unable to sell for the list price. It’s time to check out home improvements that increase home value so you can enjoy a higher return on investment.