Home buyers in May paid 25 percent more for a house than they would have paid one year ago, according to the latest housing report data for Fort Worth. The median home price for May 2021 climbed to $295,000, setting another record high.
The continued rising prices are attributed to high demand, low mortgage rates, and a lack of inventory, which stayed at 0.9 months for the fourth consecutive month in Fort Worth. 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.
“In many cases, the asking price for a home has become the starting point for negotiations,” said Elizabeth McCoy, 2021 President of the Greater Fort Worth Association REALTORS®. “Home buyers should prepare themselves for competition for listings and come to the table with their finances in order. Having a REALTOR® to guide them through the negotiations is essential.”
For every listing, there is an average of 5.1 offers, according to a recent report from the National Association of REALTORS®. What’s more, half of homes nationwide are being sold above list price.
The homebuying process is also moving faster than ever, with the average number of days a house remains on the market falling to just 19 days in Tarrant County. Active listings in Fort Worth are down 54.8 percent from May of 2020, exacerbating the pent-up demand in the market.
“Home buyers looking to lock in still-low mortgage rates face fierce competition for fewer homes for sale than last year’s historic pandemic lows, pushing up the typical asking price in May to an all-time high for the fourth consecutive month,” said Danielle Hale, realtor.com®’s chief economist. “The good news is that price momentum may be beginning to cool off.”