Housing Report: September 2023
September 2023 Housing Report
Stable prices and increasing inventory were the highlights of the September housing market. The median Fort Worth home price was $334,450, which is down 1.6 percent year over year.
Inventory climbed to 2.5 months in Fort Worth and in Tarrant County. The Texas Real Estate Research Center at Texas A&M University states that 6.5 months of inventory would represent a balanced market, however the steady increases are providing more options than homebuyers have seen in years.
Despite this good news, closed sales are down 8.9 percent in Fort Worth and 17.4 percent in Tarrant County, compared to September of 2022. Ask just about any prospective homebuyer and they’ll tell you that the road block now lies with mortgage rates.
“There are people out there who need to both upsize and downsize, but they have a 3 percent interest rate and don’t want to let it go,” said Bart Calahan, 2023 President of the Greater Fort Worth Association of REALTORS®. “With no real indicator of when the rates will start to go down again, it’s better to find a home you love now and refinance later.”
Mortgage rates rose for the fifth consecutive week, according to Freddie Mac, which reported a 30-year fixed-rate mortgage averaged 7.57 percent last week. Meanwhile, the level of adjustable-rate mortgage (ARM) applications jumped by 15 percent week over week, according to the Mortgage Bankers Association. ARM applications now comprise 9.2 percent of total mortgage applications, which is the highest since November 2022.
Efforts are being made by everyone in the housing industry to overcome a new record high in homebuyer pessimism, as 84 percent of Americans polled in Fannie Mae’s latest National Housing Survey said it was a bad time to buy a home.
“Mortgage rates persistently over 7 percent appear to be deepening the malaise consumers feel about the home purchase market,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “In fact, high mortgage rates surpassed high home prices as the top reason why consumers think it’s a bad time to buy a home, a survey first.”
Days on the market are now at 40 days in Fort Worth and 37 days in Tarrant County. The silver lining is that current market conditions are leading to pent up demand, which will likely send a flood of buyers and sellers into the market once mortgage rates start to decrease. The question of when remains a mystery for now.
September 2023 Fort Worth Statistics At-A-Glance
- 864 - Homes sold in September 2023, 8.9 percent less than September 2022
- $334,450 - Median price in September 2023, 1.6 percent less than September 2022
- 2.5 - Monthly housing inventory in September 2023, 0.3 months more than September 2022
- 40 - Average number of days homes spent on the market in September 2023, 8 days more than September 2022
- 31 - Average number of days to close in September 2023