April 2023 Housing Report
Inventory held steady in April of 2023 in Fort Worth, at a time of year when more people are typically looking to buy or sell a home. Tarrant County was at 1.8 months and Fort Worth was at 2 months of inventory – both flat from March.
Although this is double the inventory numbers seen at this time last year, it is still historically low. The Texas Real Estate Research Center at Texas A&M University states that 6.5 months of inventory would represent a balanced market. Meanwhile, the median home price in Fort Worth was at $336,250, which is an increase from March but a 5.3 percent decrease from April of 2022.
“The key difference affecting our market from spring of 2022 to spring of 2023 is mortgage rates,” said Bart Calahan, 2023 President of the Greater Fort Worth Association of REALTORS®. “Even though we have more inventory, the market is holding very steady compared to last year’s frenzy due to the impact that higher mortgage rates have on affordability.”
At an economic update forum last week, National Association of REALTORS® (NAR) Chief Economist Lawrence Yun said that new home sales are back to pre-pandemic levels, however, existing-home sales are historically low. Currently, national housing inventory is down 40 percent compared to the first quarter of 2019. The housing market is being held back by the lack of housing inventory, a problem that existed before the pandemic.
"Due to the intense housing inventory shortage, multiple offers are returning, especially on affordable homes," Yun said. "Price declines could be short-lived."
Days on the market fell in both Tarrant and Johnson Counties, but still averaged about 30 days more than April of 2022. In Fort Worth, the average home spent 52 days on the market. Closed sales were down 9 percent year over year in Tarrant County, holding steady with March’s numbers at 2,010 homes sold.
Experts are estimating the market will start to pick up later in the year, as mortgage rates are predicted to fall, although very slowly. Yun forecasts that mortgage rates will fall closer to 6.0 percent later in 2023 and go below 6.0 percent in 2024.
April 2023 Fort Worth Statistics At-A-Glance
- 969 - Homes sold in April 2023, 9 percent less than April 2022
- $336,250 - Median price in April 2023, 5.3 percent less than April 2022
- 2.0 - Monthly housing inventory in April 2023, 1.1 months more than April 2022
- 52 - Average number of days homes spent on the market in April 2023, 33 days more than April 2022
- 31 - Average number of days to close in April 2023