December 2023 Housing Report

Fort Worth concluded the year with home prices averaging $325,495, marking a 4.3 percent decrease compared to the previous year. Similarly, Tarrant County saw its median home price decline to $337,990, down by 3.4 percent from December 2022.

Inventory levels also experienced a decline by the end of 2023. Fort Worth recorded a 2.3-month inventory, a decrease from November’s 2.7 months, albeit slightly higher year-over-year. According to the Texas Real Estate Research Center at Texas A&M University, a balanced market typically maintains a 6.5-month inventory, indicating the ongoing need for more homes to meet demand.

Over the past three weeks, mortgage rates have stabilized in the mid-six percent range, following a decline from a peak of 7.79 percent in late October for a 30-year fixed-rate loan, as reported by Freddie Mac. This decrease has spurred a slight increase in demand, prompting buyers to act swiftly as sellers prepare to enter the market post-holiday season.

“Buyer optimism is on the rise with the decline in mortgage rates,” noted Blake Barry, 2024 President of the Greater Fort Worth Association of REALTORS®. “It’s an opportune time for buyers to begin their search before increased competition arrives with the spring market.”

Typically quieter, the winter months witnessed Fort Worth homes spending an average of 49 days on the market and 50 days in Tarrant County in December. Closed sales dipped by 12.6 percent year-over-year in Fort Worth, while active listings saw a slight uptick of 1.4 percent.

Economists anticipate a busier spring market, potentially driving up prices if inventory fails to rebound. Concerns arise regarding affordability, despite the boost from lower mortgage rates, as pent-up demand and low inventory may lead to bidding wars.

“Potential bidding wars could drive prices upward in certain areas,” explained Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “Even amid higher mortgage rates and fewer buyers last year, finding the right home remained a challenge. REALTORS® play a vital role in facilitating negotiations and guiding buyers to their ideal homes.”

Key Fort Worth Statistics for December 2023:

• 689 homes sold, marking a 12.6 percent decrease compared to December 2022
• Median price of $325,495, reflecting a 4.3 percent decrease year-over-year
• 2.3-month housing inventory, up by 0.2 months from December 2022
• Average of 49 days on the market for homes in December 2023, down by 7 days from December 2022
• Average of 31 days to close in December 2023