TARRANT COUNTY, Texas — This story originally appeared in the Dallas Business Journal, a WFAA news partner.
The number of closed sales dropped more than 30% year-over-year in Fort Worth and Tarrant County in November.
Pricing continued to slide, with the median home price in Fort Worth dropping from $341,000 last month to $333,009 this month. Inventory held steady at 2.3 months, according to a report from the Greater Fort Worth Association of Realtors.
The median home price is still up 7.4% year-over-year. The number of homes sold in November, 740, was 32.1% less than November last year.
“A lot of the younger generation, the 20 and 30 year olds who haven’t seen interest rates at 6%, 7% or even 8% in some cases, and that scares them,” said Bart Calahan, Greater Fort Worth Association of Realtors 2023 president. “I think until they figure out that this is not as bad as it looks like on paper, you’ll see inventory continue to go up. The demand will still be there, but it’s going to be a more cautious purchase.”
Active listings were up 122.3% in Fort Worth in November, and well over 100% in Tarrant, Parker, and Johnson Counties. In addition, those listings are taking longer to sell, with homes in Fort Worth on the market an average of 41 days.
Mortgage rates have dipped from a previous high of 7.08%. The 30-year fixed-rate mortgage averaged 6.33% last week, according to Freddie Mac.
Price dictates where the market goes, Calahan said. When things get too hot, consumers start backing off, which in turn brings down the price. As far as home prices decreasing, a lot of it will be determined by the individual listing. Given current circumstances, things will likely get more favorable for buyers.
“I think the median price will probably level out for the next several months,” he said. “We’re about to go into what’s traditionally our slow time, November, December and January. It should start picking back up a little bit in February and March.”
