Fort Worth Housing Market Forecast 2024: Will it Crash?
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One burning question on the minds of those entering the Fort Worth housing market is whether it’s currently a buyer’s or seller’s market. With 2.4 months of inventory in Fort Worth and 2.3 months in Tarrant County, the scarcity of available homes leans toward a seller’s market.
The January 2024 housing report reveals a 1.6 percent decrease in the median home price, settling at $315,000 compared to the same period in 2023. While this might indicate a minor dip, it’s crucial to view it within the broader context of a national trend of rising home prices. Johnson County experienced a 6.7 percent year-over-year increase, and Parker County soared with an impressive 10.2 percent rise—underlining the complexity of regional dynamics.
Fort Worth Housing Market Trends in 2024
In January 2024, the median home price in Fort Worth experienced a modest decline, resting at $315,000. This marks a 1.6 percent decrease compared to the same period last year, hitting the lowest point since the fall of 2021. Contrarily, Tarrant County maintained a steady median price of $335,000, showcasing resilience in the face of market fluctuations.
In neighboring Johnson and Parker Counties, the trend mirrored the national surge in home prices. Johnson County witnessed a robust 6.7 percent year-over-year increase, settling at $344,985. Parker County, not to be outdone, surged ahead with a 10.2 percent rise, reaching an impressive $475,000—10.2 percent higher than January 2023.
Steady Mortgage Rates and Market Dynamics
Blake Barry, 2024 President of the Greater Fort Worth Association of REALTORS®, notes the stability of mortgage rates and months of inventory as key factors shaping the current landscape.
“Mortgage rates, along with months of inventory, have remained steady,” Barry states. “For those ready to embark on the journey of homeownership, now presents an opportune moment. Engage with a knowledgeable REALTOR® who can expertly guide you through the process.”
Despite the inviting atmosphere for potential homebuyers, available properties in Fort Worth are lingering on the market a bit longer than usual. The days on the market increased to 58 days, a marginal difference from a year ago but notably longer than December 2023. However, the slower pace offers a silver lining, providing buyers with additional time for negotiations and thorough inspections.
Challenges in Finding the Perfect Home
The quest for a dream home in Fort Worth comes with its share of challenges.
The Texas Real Estate Research Center at Texas A&M University emphasizes that a balanced market typically boasts a 6.5-month inventory. In contrast, Fort Worth and Tarrant County currently grapple with 2.4 and 2.3 months of inventory, respectively—underscoring limited options for potential buyers.
With mortgage rates expected to hover around the 6 percent range throughout the year, sellers who have delayed their plans might finally make their move. This could inject a much-needed boost into the inventory, as National Association of REALTORS® Chief Economist Lawrence Yun suggests, “Many delayed home sellers may be willing to give up 3-to-4 percent rates as life circumstances have changed, thereby boosting inventory. Home sales will no doubt rise this year.”
January 2024 Fort Worth Statistics At-A-Glance
- 582 – Homes sold in January 2024, a 1.8 percent increase from January 2023
- $315,000 – Median price in January 2024, a 1.6 percent decrease from January 2023
- 2.4 – Monthly housing inventory in January 2024, 0.3 months more than January 2023
- 58 – Average number of days homes spent on the market in January 2024, 2 days less than January 2023
- 32 – Average number of days to close in January 2024
Fort Worth Housing Market Forecast for 2024 and 2025
According to Zillow, the average home value in Fort Worth stands at $298,992, reflecting a 2.3% decline over the past year. Additionally, homes in Fort Worth typically go pending in approximately 33 days, indicating a dynamic and active market as of January 31, 2024.
Key Housing Metrics
1. For Sale Inventory (January 31, 2024)
The current for-sale inventory in Fort Worth is 2,377, representing the number of available properties in the market as of the end of January 2024.
2. New Listings (January 31, 2024)
There were 624 new listings in Fort Worth as of January 31, 2024, indicating the influx of fresh properties into the market.
3. Median Sale to List Ratio (December 31, 2023)
The median sale to list ratio, a key indicator of market competitiveness, stands at 0.991 as of December 31, 2023, suggesting a balanced negotiation environment between buyers and sellers.
4. Median Sale Price (December 31, 2023)
The median sale price for homes in Fort Worth was $313,333 as of December 31, 2023, reflecting the middle point of all sale prices during that period.
5. Median List Price (January 31, 2024)
The median list price, indicating the middle point of all property listing prices, is $332,583 as of January 31, 2024.
6. Percent of Sales Over List Price (December 31, 2023)
21.1% of sales in Fort Worth were transacted over the list price as of December 31, 2023, highlighting a segment of the market where demand exceeds initial property valuations.
7. Percent of Sales Under List Price (December 31, 2023)
Conversely, 56.0% of sales in Fort Worth were under the list price as of December 31, 2023, indicating a substantial portion of properties selling below their initial listing prices.
Is Fort Worth a Buyer’s or Seller’s Housing Market?
Assessing whether the current state of the Fort Worth housing market favors buyers or sellers involves considering key metrics. With a median sale to list ratio of 0.991 as of December 31, 2023, the market appears to strike a balance between the interests of both buyers and sellers. This ratio suggests a neutral negotiation environment, offering opportunities for both parties to engage in fair transactions.
Are Home Prices Dropping in Fort Worth?
Zillow’s data reveals that the average home value in Fort Worth has experienced a 2.3% decline over the past year, bringing the average to $298,992 as of January 31, 2024. While this indicates a decrease, it’s essential to interpret this as a nuanced shift rather than an outright drop. Monitoring future trends will provide a clearer understanding of the trajectory of home prices in Fort Worth.
Will the Fort Worth Housing Market Crash?
The Fort Worth housing market, as of the current data, does not indicate an imminent crash. While certain metrics, such as the decline in average home value, may raise concerns, it’s crucial to consider the broader context. The balanced median sale to list ratio and other factors suggest a resilient market. However, continuous monitoring and staying informed about economic factors are prudent practices for all stakeholders in the real estate market.
Is Now a Good Time to Buy a House in Fort Worth?
Considering the current state of the Fort Worth housing market, the decision on whether it’s a good time to buy a house depends on individual circumstances and goals. The market’s equilibrium, with a median sale to list ratio indicating fair negotiations, provides a favorable environment for buyers. Additionally, the 2.3% decline in average home value over the past year may present opportunities for those seeking more affordable options. As always, consulting with real estate professionals and assessing personal financial readiness are crucial steps in making informed decisions about home purchases.
Should You Invest in the Fort Worth Real Estate Market?
Population Growth and Trends
- Fort Worth has been experiencing significant population growth in recent years, making it an attractive destination for real estate investors. The city’s population growth can be attributed to factors such as job opportunities, affordability, and a thriving economy.
- With its strategic location in the Dallas-Fort Worth metroplex, Fort Worth benefits from spillover growth from the larger metropolitan area, contributing to its sustained population increase.
Economy and Jobs
- Fort Worth boasts a diverse and robust economy with key sectors including aerospace and aviation, healthcare, manufacturing, and logistics. The presence of major corporations, including Lockheed Martin and American Airlines, provides a stable job market.
- The city’s job market has been expanding, creating a strong demand for housing. This employment growth is a positive indicator for real estate investors, as a strong job market is often correlated with a healthy housing market.
Livability and Other Factors
- Fort Worth offers a high quality of life, with a lower cost of living compared to many other major U.S. cities. The city is known for its cultural amenities, excellent schools, and family-friendly communities, making it an appealing place for residents.
- Fort Worth’s affordability and diverse housing options cater to a broad range of potential tenants, which is advantageous for real estate investors seeking a diverse rental market.
Rental Property Market Size and Growth
- The rental property market in Fort Worth is substantial and continues to grow. The city’s expanding population and job market have created a consistent demand for rental properties.
- Rental properties in Fort Worth offer investors the opportunity to generate passive income and the potential for long-term appreciation of property values.
Other Factors Related to Real Estate Investing
- Fort Worth’s real estate market is known for its stability and resilience. Even during economic downturns, the city’s housing market has shown relative strength.
- The city’s regulatory environment is favorable for real estate investors, with landlord-friendly laws that provide protection for property owners.
- Fort Worth’s real estate market offers a variety of property types, from single-family homes to multifamily units and commercial properties. This diversity allows investors to tailor their portfolios to their preferences and investment goals.
- Fort Worth is strategically located near major transportation hubs, including DFW International Airport. This connectivity enhances the city’s desirability as a place to live and work, further benefiting real estate investors.
Thus, investing in the Fort Worth real estate market presents a compelling opportunity for investors. The city’s population growth, strong economy, livability, and rental market size all contribute to its attractiveness. With a diverse range of property types and a favorable regulatory environment, Fort Worth is a destination worth considering for real estate investors seeking long-term growth and stability in their portfolios.
Sources:
- https://www.zillow.com/fortworth-tx/home-values
- https://www.gfwar.org/housing-report
- https://www.redfin.com/city/30827/TX/Fort-Worth/housing-market
- https://www.realtor.com/realestateandhomes-search/Fort-Worth_TX/overview
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