December 2021 Local Housing Reports
Inventory numbers dropped in December 2021 to the lowest figures since the start of the pandemic. Inventory for both Fort Worth and Tarrant County was at 0.7 months. The Texas Real Estate Research Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.
Inventory for Fort Worth was at its highest in 2021 in July, at 1.3 months, which is still in the realm of historically low numbers. Frustrated homebuyers are hoping things look up in the new year.
“We are starting out 2022 with new record lows of available inventory,” said Shannon Ashkinos, 2022 President of the Greater Fort Worth Association of REALTORS®. “The first quarter of 2022 will be a good time to purchase for those first-time homebuyers and buyers who are not cash buyers, before the market really heats up again. We expect 2022 to be another highly competitive season for buyers.”
The high demand and low supply also continued to drive up home prices. The average home price in Fort Worth in December was $325,300, a 25.4 percent increase year over year. Homes were on the market for an average of 28 days.
Meanwhile, the arrival of the new year also came with an increase in mortgage rates. In January, the 30-year fixed-rate mortgage was averaging 3.22%, Freddie Mac reports.
“Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” says Sam Khater, Freddie Mac’s chief economist. “With higher inflation, promising economic growth, and a tight labor market, we expect rates will continue to rise.
The National Association of REALTORS® forecasts that mortgage rates will average 3.7% by the end of this year. Economists expect the rising rates will help cool the demand, as increases along with escalating home prices will impact affordability, pricing some buyers out of the market.
December 2021 Fort Worth Statistics At-A-Glance
- 1,164 - Homes sold in December 2021, 8.3 percent less than December 2020
- $325,300 - Median price in December 2021, 25.4 percent more than December 2020
- 0.7 - Monthly housing inventory in December 2021, 0.3 months less than in December 2020
- 28 - Average number of days homes spent on the market in December 2021, 5 days less than December 2020
- 39 - Average number of days to close in December 2021