Inventory dropped to less than one month in Fort Worth during February 2021, as demand for houses continued to drive up prices in an unprecedented seller’s market in the DFW area.
Fort Worth median home prices are now up to $270,000, a 14.9 percent increase from February 2020. Meanwhile, active listings are down 57.1 percent year over year.
“Low inventory is affecting us locally as well as statewide, leading to some serious buyer competition in most segments of our market,” said Elizabeth McCoy, 2021 President of the Greater Fort Worth Association REALTORS®. “Buyers can greatly benefit from expert advice from a REALTOR® in crafting offers that will compete well in multiple offer situations, which are becoming very common.”
Inventory has dropped steadily since the summer of 2020, reaching a new low as it dipped below one month to 0.9 months in February 2021. The Real Estate 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.
Closed sales in Fort Worth decreased 8.1 percent in February 2021, and homes spent an average of 31 days on the market, 21 days less than in February 2020.
“Last month’s record cold and snowstorms likely caused sellers to hit pause, even if only temporarily,” says realtor.com®’s Chief Economist Danielle Hale. “However, in today’s inventory-starved market, any setback is significant. Unless we see some big improvements in the new listings trends over the coming months, buyers can expect stiff competition.”
According to realtor.com®’s Monthly Housing Trends Report, nationwide there are nearly 50% fewer homes for sale this year than last year. With interest rates on the rise and increased home prices, the spring homebuying season is going to be a tough one for house hunters.