Realtors cautious as Fort Worth home prices fall, inventory increases. 

By: Bob Francis

New projects set to bring more homes to market 

Fort Worth home prices fell again in August, and housing inventory continued climbing upward as the market continued to cool from last year when prices rose and inventory was limited. 

The median home price in Fort Worth in August was $335,000, down 4.3% from a year earlier. But, with mortgage rates — which hit a multi-decade high in August — now above 7%, monthly mortgage payments have gone up significantly from a year ago.

In Fort Worth, closed sales have consistently been down year over year throughout 2023. The total of 2,187 closed sales in Tarrant County in August was down almost 10% from 2022. In Fort Worth, that number was down 4%.

“Until mortgage rates start to come down, buyers are going to continue to be limited in their price range and therefore their options,” said Bart Calahan, 2023 President of the Greater Fort Worth Association of Realtors and an agent at Roots Real Estate Co. 

According to the latest RE/MAX National Housing Report, Dallas-Fort Worth ranks fifth in the U.S. for the largest decrease in home-sale prices year-over-year. The report showed the median home sale price in Dallas-Fort Worth is $400,000.

The Fort Worth area is a little lower than the Dallas area in terms of price, Steve Young with RE/MAX Associates of Arlington, said.  

“We’re down a little bit from Dallas right under $400,000, maybe around $375,000, for the median home sale price,” he said. 

The high interest rates and limited inventory are keeping some people out of the market, Young said. The market also favors out-of-town buyers who frequently come to buy with lots of cash, Young said. 

“I’ve had more cash deals in the last four years than I’ve had in my 30 or so years of being in real estate,” he said. 

Young advises buyers to have as big a down payment as they can afford. 

“Right now, the market is still in the seller’s favor, so when I work with a buyer I have to tell them to be ready, things may get rough. But it’s gotten a little better, depending on where you’re buying,” he said. 

Young and Calahan are hopeful that the inventory issues that have limited the supply of  homes for sale may be lessening. 

“In August, the housing inventory was 2.4 months,” said Young. “That’s not perfect, but it’s better than where we were last year.” 

Calahan is pleased to see some home-building projects get announced that will increase inventory. 

“We were a bit worried that the high interest rates might impact home building, but that hasn’t been the case here,” he said. 

In August, Walton Global, which is developing large swaths of land around Chisholm Trail Parkway announced that Arlington-based homebuilder D.R. Horton purchased 151 acres in southwest Fort Worth for a residential development called Longhorn Estates. D.R. Horton plans to deliver homes on the site in late 2024,

The land is slated for residential development of 398 single-family homes, the first two phases of an anticipated four phases with nearly 1,000 homes. The property is just west of Crowley and about 20 minutes from downtown Fort Worth. 

Over the next decade, Walton Global and D.R. Horton plan to deliver about 4,600 single-family homes in the southwest Fort Worth market, as well as another 2,000 to 3,000 multi-family homes. 

Developments in those areas of southwest Fort Worth were once too far outside the city for most families, Young said. 

“With the Chisholm Trail Parkway, homeowners there can commute to work in downtown Fort Worth pretty easily,” said Young. “It really helps us because it gives the homebuyer a lot of options.” 

Meanwhile, Hillwood Communities has started work on a project just west of Justin, near the Alliance area. Called Treeline, the 800-acre project is expected to bring 2,500 single-family homes to the area, which is in Northwest ISD. Homes there are expected to hit the market in 2025. 

Bob Francis is the business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.