June 2022 Housing Report
Price increases slowed and inventories rose in June in the greater Fort Worth area, as the hot housing market finally started to hit the brakes. Inventory in June jumped to 1.6 months, a .5 month increase from last month, and a .5 month increase from June of 2021.
The Texas Real Estate Research Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced, so the numbers are still far from normal. However, the inventory hasn’t been this high in Fort Worth since September 2020.
The rising inventory, along with a number of other factors, has likely contributed to the stabilizing of price increases. Although still up 21 percent year-over-year, the median price for a home sold in Fort Worth in June was $363,000, a slight dip from May’s median of $367,000. Parker County continued a downward trend back to a $450,000 median price, while Tarrant and Johnson Counties saw small increases.
“We are at that time of the year when typically we see home prices at their peak, but recently we’ve seen more price reductions,” said Shannon Ashkinos, 2022 President of the Greater Fort Worth Association of REALTORS®. “This could be indicative of sellers continuing to try to overprice and the market making an adjustment, but it’s likely we’re headed toward a more normalized market. The question is, what does that look like now?”
In recent weeks, rising mortgage rates have stalled, as concerns about a potential recession continue to rise. A 30-year fixed-rate mortgage was at 5.3 percent for the week ending July 7. Last year at this time, 30-year rates averaged 2.90 percent.
“The housing market is clearly undergoing a transition,” says National Association of REALTORS® Chief Economist Lawrence Yun. “Trying to balance the housing market by choking off demand via higher mortgage rates is damaging to consumers and the economy. The better way to balance the market is through increased supply, which also helps the broader economy.”
New construction as a way of helping to increase that supply is facing challenges, too, as inflation has driven up the cost of materials. According to Bank of America’s Who Builds the House? report, the average cost for materials to build a single-family home jumped 42 percent from 2018 to 2021.
Despite the affordability roadblocks on the way to home ownership, days on the market was down to 16 days in Fort Worth and Tarrant County in June, an indicator that demand is still high as prospective homebuyers who have been sidelined due to low inventory are entering back into the market.
June 2022 Fort Worth Statistics At-A-Glance
- 1,191 - Homes sold in June 2022, 7.6 percent less than June 2021
- $363,000 - Median price in June 2022, 21 percent more than June 2021
- 1.6 - Monthly housing inventory in June 2022, 0.5 months more than June 2021
- 16 - Average number of days homes spent on the market in June 2022, 8 days less than June 2021
- 47 - Average number of days to close in June 2022