Although prices look similar to a year ago, inventory is higher. In January 2022, inventory was only 0.7 months, but in January 2023, it was up to 2.1 months – still low but providing many more options for prospective homebuyers. The Texas Real Estate Research Center at Texas A&M University cites that 6.5 months of inventory represents a balanced market.
“From my viewpoint, the market is stabilizing, which hopefully means the volatility is behind us,” said Bart Calahan, 2023 President of the Greater Fort Worth Association of REALTORS®. “For homebuyers who have been stuck on the sidelines, the fact that prices are steady and homes are taking longer to sell is a good thing. They have a great opportunity now to explore all the options and find a home that fits their needs.”
Days on the market was up to 62 days in Fort Worth in January, and closed sales were down between 30-35 percent in Tarrant, Johnson, and Parker Counties. With the spring season on the horizon, many are eagerly waiting for the buyers and sellers to emerge.
A potential lead on those buyers comes from a recent analysis of census data from the National Association of REALTORS® (NAR), which shows young adults who had been living at home with their parents are starting to leave the nest. In 2022, 15.6% of adults ages 25 to 34 lived at home with their family, down from 17.8% in 2020. With rents up by double digits and some savings under their belt, buying a home is becoming an increasingly viable option for this segment of the population.
Nationally, pending home sales rose 2.5% in December, ending a six-month slide according to NAR’s Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings.
“A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42% in the past three years,” said NAR Chief Economist Lawrence Yun. “Even with a projected reduction in home sales this year, prices are expected to remain stable in the vast majority of the markets due to extremely limited supply.”