Despite the Federal Governments efforts to stimulate the housing markets it’s still dead in the water. With 2011 the lowest numbers in years for home sales and new construction, it looks as if nationally we have seen the bottom. The unknown at this point is the shadow inventory still out there and when will it be coming into the market and how long will it take to be liquidated.
The housing market in Fort Worth Texas I am seeing an upturn. Move in ready homes priced correctly are seeing multiple offers at or above list price while overpriced and out of condition homes are starting to smell like week old fish. If you have a house for sale now and it’s been on the market for more than 30 days, you are over priced.
All real estate markets are local and there are big differences within in Texas. Consider this, Texas is the second largest housing market in the nation since 2008. This I believe is attributed with the booming oil and gas business, friendly and favorable business climate, and extreme high tax burdens being put on people in other States such as New York and California.
What About Homes Prices?
NAR reported the U.S. median home price fell 22.4% from 2007 to 2009 and fell another 4% last year. Texas median home price however dropped 1% in 2007 to 2009 and had a small increase last year of .07%.
Distressed sales in Texas are between 10% and 20% of total sales, which is a large number but still that’s 80% to 90% of the market are resales and new construction.
The Fort Worth, Texas 2011 median house value was $110,000 down 3% from the year earlier. While the Texas State median price was $148,600. This puts Fort Worth, Texas as one of the most affordable places to buy a home.
Ahead For The Rest Of 2012
I believe we have already started an economic and housing upturn in the Fort Worth area. Prices seem to have stabilized and by year end we will see modest gains in home values and these gains should continue on into 2013. Interest rates are anyones guess. They are artificially low now because of government intervention. So how long will that last? I believe interrest rates will go up and that is a 2 edged sword. With higher interest rates banks will be more likely to make home loans but buyers will have to look at less house than they are looking at today.
All in all we are blessed to be in Fort Worth. It’s a great city with a robust economic outlook and an excellent choice for your future.