May 2023 Housing Report
Inventory in Fort Worth was static for the third month in a row with only 2 months of inventory in March, April, and May. As a busy spring and summer for real estate ramped up, prospective homebuyers felt the pinch of a limited number of listings.
Perhaps as a result, home prices continued their slow climb, although they are still down from the spring 2022 prices. The median home price in Fort Worth was $340,000, a 7.4 percent decrease year over year, and Tarrant County was $356,500, a 5.1 percent decrease year over year. The Texas Real Estate Research Center at Texas A&M University states that 6.5 months of inventory would represent a balanced market, so inventory is still a pressure point for the local market.
“We are a rapidly growing city, which contributes to the inventory shortage,” said Bart Calahan, 2023 President of the Greater Fort Worth Association of REALTORS®. “Mortgage rates are a factor, too. Homeowners who want to move are deciding to wait because they are locked in at 3 to 4 percent and they don't want to buy at 7 percent.”
In addition to sellers delaying their plans, buyers may be waiting things out as well, due to persistent high hurdles to affordability. A recent report from the National Association of Realtors® and Realtor.com® reveals that the country's housing inventory crunch impacts middle-income buyers more than any other income bracket. Middle-income buyers can afford to buy less than a quarter (23 percent) of listings in the current market. Five years ago, this income group could afford to buy half of all available homes.
"Ongoing high housing costs and the scarcity of available homes continues to present budget challenges for many prospective buyers, and it's likely keeping some buyers in the rental market or on the sidelines and delaying their purchase until conditions improve," said Realtor.com® Chief Economist Danielle Hale.
Active listings are up 47 percent in both Fort Worth and Tarrant County and more than 100 percent in Parker County, so there are more options than there were a year ago for the buyer who is ready and able to get into the market. Days on the market are trending downward to 45 days in Fort Worth and 41 days in Tarrant County, with multiple offer situations still coming up when the right home becomes available.
May 2023 Fort Worth Statistics At-A-Glance
- 1,141 - Homes sold in May 2023, 1.4 percent less than May 2022
- $340,000 - Median price in May 2023, 7.4 percent less than May 2022
- 2.0 - Monthly housing inventory in May 2023, 0.9 months more than May 2022
- 45 - Average number of days homes spent on the market in May 2023, 24 days more than May 2022
- 30 - Average number of days to close in May 2023
