December 2023 Housing Report

2024 is off to a great start.  We are working diligently, keeping up with current markets and tracking trends in real estate.  Based upon recent information, we are expecting a surge in sales in February. 

The year ended with home prices in Fort Worth at $325,495, a 4.3 percent decrease year over year. Tarrant County’s median home price was $337,990, which was down from December of 2022 by 3.4 percent.

Also down at the end of 2023 was inventory. Fort Worth was at 2.3 months, which decreased from 2.7 months in November but was up slightly 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 more homes are still needed to meet demand.

Mortgage rates have remained in the mid-six percent range over the last three weeks, after falling from a late October peak of 7.79 percent for a 30 year fixed rate loan, according to Freddie Mac. The decrease has created a slight uptick in demand, so as sellers start to emerge after the holiday season, it will be important to move quickly.

“Buyer optimism is definitely rising as the mortgage rates fall,” said Blake Barry, 2024 President of the Greater Fort Worth Association of REALTORS®. “It’s a good time for buyers to get a jump on finding a home before more competition arrives with the spring market.”

The winter is usually a quieter time for the housing market. In December, days on the market for Fort Worth was 49 days and 50 days in Tarrant County. Closed sales were down 12.6 percent and active listings were up 1.4 percent in Fort Worth year over year.

Economists say that a busier spring market could lead to an increase in prices if inventory doesn’t trend back upward. Concerns are that affordability, which has gotten a boost from the lowering mortgage rates, will suffer if the release of pent-up demand and low inventory leads to bidding wars.

“These bidding wars are likely to push home prices up in some areas,” says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “Even last year, as mortgage interest rates were higher and there were fewer buyers, the most difficult tasks for home buyers was finding the right home. REALTORS® play a critical role in helping buyers with negotiations and in finding the buyer the right home.”

December 2023 Statistics At-A-Glance…