With a vibrant nightlife, strong job market, and countless outdoor attractions, it’s not surprising that Fort Worth is one of the fastest-growing cities in the country. Residents seeking urban amenities blended with a taste of country life love the vibe of this North Texas city. And while the housing market is not sizzling like it was in 2021, buyers still need to be prepared to head into a competitive home search.
A large number of Fortune 500 companies across varied industries has made Fort Worth a popular destination for job seekers looking to expand their career opportunities and enjoy a high quality of life. Young professionals, families, and retirees alike are attracted to the city’s lively downtown area, which regularly hosts concerts and adds innovative restaurants to its storefronts all the time.
Consequently, demand is high for housing, and buyers and sellers should be ready to negotiate. Below you will discover the latest information you need to know about the Fort Worth real estate market.
Fort Worth’s housing market forecast 2023
As a sought-after city, Fort Worth continues to see a strong housing market with escalating prices. Since May of 2022, the
median list price for a home has been nearly 10% higher. These trends favor sellers, and many will be able to command higher offers and avoid too many concessions as a result.
Buyers, however, can feel good about investing in a coveted location that promises to continue growing — even if they end up paying more. Furthermore, Fort Worth residents benefit from a cost of living that is cheaper than that of other Texas cities. In fact, Fort Worth’s average home cost is over $100,000 lower than Austin’s and nearly $80,000 lower than nearby Dallas's. Buyers can get more for their money in Fort Worth.
Interest rates are rising nationally
Mortgage interest rates hit impressive lows in 2021, with some buyers securing sub-3.0% rates. Today, however, buyers are facing interest rates that are over double those record lows. With the Federal Reserve trying to tamp down inflation problems, rates crested 7% in 2022 and may have reached the same this year. Right now, the
average interest rate for a 30-year fixed-rate mortgage in June sits at 7.04%.
Buyers with the flexibility to wait on making a purchase may think they should do so until interest rates decrease. Unfortunately, average rates are unlikely to come close to 2021 rates. Buyers can take comfort in the fact that a higher inventory in Fort Worth could translate to more favorable listing prices, which can soften the impact of a higher interest rate. Given Fort Worth’s population growth and strong job market, it may be best for hungry buyers to invest in a new home and start amassing equity in Fort Worth now.
Inventory projections improve
Low inventory nationally triggered many of the competitive bidding wars of 2021. Normally, a buyer can expect to find a six-month supply of homes available on the market. But in 2021,
the number was 1.9 months. Since many homeowners who secured 3% mortgage interest rates two years ago are not inclined to sell, many cities nationally will remain firmly entrenched in seller’s markets.
For buyers, Fort Worth may represent an exception to the rule. That’s because inventory has ticked higher, and some experts see that trend continuing throughout 2023. Just between April and May of 2023, the
number of homes for sale increased by 11.1%. Furthermore, that increase reflects houses ranging from one-bedroom to five-bedroom options, meaning the supply will meet many buyers’ needs. This is good news for buyers, but sellers have reasons to be optimistic, too.
While homes sat on the market for an average of 74 days in May of last year, the length of time to sell a home is down by 10.6% this year. In other words, sellers hoping to make an expedient sale, even with increased competition due to greater inventory, should be able to do so.
Current housing market trends
With home sales down by 3.4% nationally so far this year, some sellers may feel like they have missed their opportunity to score a good profit with fewer concessions. Fort Worth, however, has seen its
population rise by 23.1% since 2010 as more industries flock to North Texas. With a rising population comes an ongoing need for housing. Sellers can feel confident that they will have a market for their homes, though perhaps not at the same intensity level as in 2021. Sellers are strongly advised to make essential repairs to structural components of their homes, such as electrical or HVAC systems, to maintain a competitive property. Additionally, buyers should move briskly to make an offer on homes they want. Home prices continue to rise in Fort Worth, so they also should budget for an offer above the asking price.
Explore Fort Worth’s real estate market
After a turbulent real estate market that left many buyers paying well above the asking price, buyers and sellers can expect slightly calmer waters throughout 2023. A notable uptick in the inventory of homes for sale may even give buyers an edge. No matter what the market conditions suggest, anyone ready to buy or sell would be smart to partner with a real estate agent. A good agent will have their finger on the pulse of local market conditions and knows how to develop the best pricing strategy. They will help you meet budgetary and timeline goals while bringing a high level of professionalism to the process.
John Zimmerman has 30 years of experience navigating the Fort Worth housing market. At the John Zimmerman Group, the team uses their in-depth understanding of the city’s neighborhoods and market trends to inform every client interaction. You can expect a thorough and transparent approach to buying or selling that puts your interests first.
Contact them today to explore the Fort Worth market.
