Home prices in the greater Fort Worth area continued their steady decline in August. The median home price in Fort Worth was $350,000. This is down from $367,000 in May, but still a 15.4 percent increase from August of 2021 – well above the normal amount of year-over-year appreciation.
The inventory landscape continued to improve, climbing to 2.1 months in Fort Worth. Johnson County was at 2.9 months, and Parker County moved up to 3.3 months. Despite these increases, inventory is still far from where it needs to be. The Texas Real Estate Research Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.
“The increases in inventory and home price reductions have been minimal, which means we’re still very much in a strong market,” said Shannon Ashkinos, 2022 President of the Greater Fort Worth Association of REALTORS®. “With inventory this tight, buyers have fewer choices than they might anticipate at this time of year, which means it’s still important to move quickly when the right house comes along.”
Mortgage rates continue to fluctuate, making it harder for buyers to determine their budget. Freddie Mac reports the 30-year fixed-rate mortgage averaged 5.89 percent for the week ending September 8, surpassing their recent reported high in mid-June.
“While borrowing costs have increased faster than people’s wages, buyers currently need to spend 10 percent more of their budget for their mortgage payment if they want to buy the median-priced home,” said Nadia Evangelou, Senior Economist and Director of Forecasting for the National Association of REALTORS®.
Although mortgage rates are higher than they were a year ago, active listings are much higher, too. Fort Worth had 2,207 active listings in August, up 60 percent from August of 2021. Johnson County’s active listings increased 111 percent from a year ago. With more options available, and fewer multiple offer situations, the pressure on buyers may have eased, but the combination of inflation and mortgage rates will cause them to pause and consider their budgets very carefully.