April 2023 Housing Report
The real estate market in Fort Worth remained stable in April 2023, presenting favorable conditions for both home buyers and sellers. While inventory levels stayed steady during a time when the market typically sees increased activity, the numbers indicate a positive shift from the previous year.
Although inventory doubled compared to the same period in 2022, it is important to note that the current inventory levels are still historically low. According to the Texas Real Estate Research Center at Texas A&M University, a balanced market would ideally have around 6.5 months of inventory. In comparison, Tarrant County recorded 1.8 months of inventory, and Fort Worth had 2 months.
One encouraging aspect for prospective buyers is the median home price in Fort Worth, which stood at $336,250 in April. While this represents a slight increase from March, it is a 5.3 percent decrease from the previous year. The decline in prices indicates that there are opportunities for buyers to find affordable homes in the market.
Bart Calahan, the 2023 President of the Greater Fort Worth Association of REALTORS®, highlighted the impact of mortgage rates on the market. Despite the increase in inventory, the market has remained stable compared to the frenzy of the previous year. This stability can be attributed to the effect of higher mortgage rates on affordability.
The National Association of REALTORS®’ Chief Economist, Lawrence Yun, also provided insights into the current housing market. Yun stated that new home sales have returned to pre-pandemic levels, while existing-home sales remain historically low. The primary factor impeding the housing market’s growth is the lack of inventory, a problem that predates the pandemic.
Yun noted that multiple offers are becoming more common, particularly for affordable homes, due to the intense shortage of inventory. While prices may experience temporary declines, these are expected to be short-lived.
In terms of market performance, the average days on the market decreased in Tarrant and Johnson Counties. However, homes in Fort Worth still spent an average of 52 days on the market, approximately 30 days longer than in April 2022. Despite this, closed sales in Tarrant County held steady at 2,010 homes sold, showing resilience in the face of market conditions.
Experts anticipate that the market will regain momentum later in the year, as mortgage rates are predicted to gradually decline. Lawrence Yun forecasts a decrease in mortgage rates to around 6.0 percent by the end of 2023 and a further decrease below 6.0 percent in 2024.
In conclusion, the Fort Worth real estate market’s stability and the presence of affordable homes offer favorable prospects for both buyers and sellers. With inventory levels, though low, remaining steady and the potential for declining mortgage rates, the market is poised for growth in the coming months. Homebuyers can take advantage of affordable prices, while sellers can find opportunities in a balanced and active market.
April 2023 Fort Worth Statistics At-A-Glance:
969 – Homes sold in April 2023, 9 percent less than April 2022
$336,250 – Median price in April 2023, 5.3 percent less than April 2022
2.0 – Monthly housing inventory in April 2023, 1.1 months more than April 2022
52 – Average number of days homes spent on the market in April 2023, 33 days more than April 2022
31 – Average number of days to close in April 2023