The housing market in Fort Worth continued its cool down, with the median home price in Fort Worth decreasing to $340,000 in September.
Although this median price indicates a continuation of a steady decline in housing prices, it is still an 11.5 percent increase from September 2021, and a 36 percent increase from September of 2020.
Inventory hasn’t been moving upwards as fast as the experts had hoped. Inventory in Fort Worth climbed to 2.2 months, and in Tarrant County, to 2.1 months. 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.
“There’s still fairly low inventory, because sellers are hesitant to list,” said Shannon Ashkinos, 2022 President of the Greater Fort Worth Association of REALTORS®. “Although prices are better now for buyers, and more negotiation options are on the table, the rapid rise in interest rates has been a powerful damper on the market.”
The current 30-year fixed mortgage rate increased to 6.92% from 6.66% the previous week, according to Freddie Mac. This is more than double what it was a year ago, and the highest level since April of 2002, adding hundreds of dollars per month to financing costs for home buyers.
“We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously,” said Sam Khater, chief economist at Freddie Mac. “The next several months will undoubtedly be important for the economy and the housing market.”
In September, closed sales were down 22.3 percent in Fort Worth, while active listings were up 73.5 percent. Houses were spending a little more time on the market as well, with the average number of days on the market at 31 in Fort Worth, and 30 in Tarrant County – almost double the recent low point of 16 days in June. The days of having to move fast on a new listing may be in the past for now.