Apartment and industrial property sales helped make Fort Worth the country’s top real estate investment market in the first quarter. According to a study by Newmark Group, investors snapped up almost $13 billion in properties, which is more than double the investment volume in the first quarter of 2022.
Through Q1 of 2022, the apartment property market experienced its best market ever; Fort Worth boasted the highest number of multifamily transactions in the nation exceeding other markets by billions of dollars in investment sales volume. The apartment market in Fort Worth looks extremely good; they are just back to normal the way it was pre-COVID.
Home prices in the greater Fort Worth area continued their steady decline in August. The median home price in Fort Worth was $350,000. The apartment property market in Fort Worth continued its cool down, with the median home price in Fort Worth decreasing to $340,000 in September.
In October, inventory continued a slow increase while housing prices remained steady in the Fort Worth area. The median home price in Fort Worth was $341,000, a 10 percent increase year over year.
In October 2022, Fort Worth home prices were up 11.6% compared to last year, selling for a median price of $347K. On average, homes in Fort Worth sell after 34 days on the market compared to 20 days last year. There were 876 homes sold in October this year, down from 1,223 last year.
Inventory in Fort Worth grew to 2.3 months though it is still nowhere near a normal market. 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 are balanced.
The apartment market continues to be strong as apartment market fundamentals continue to be a bright spot. Supply and demand keep a healthy balance. Fort Worth had significant amounts of new deliveries, which have been absorbed in record levels during the last 12-18 months in spite of rising rents.
Apartment developers are still getting their deals done even though they are experiencing substantial headwinds from cost increases and supply chain issues. The construction volume of single-family-for-rent products has picked up significantly, and it seems to have found an insatiable amount of demand in the marketplace.
Occupancy remains right around 95 percent and the slowing for-sale housing market is helping the apartment market as many people continue to rent instead of buying a house for themselves.
Even though apartment property values have come down by approximately 7 to 10 percent, they are still significantly higher than any investor had anticipated when they purchased or started developing their deals.
Hopefully, inflationary pressures will subside soon, interest rates will settle down, and Fort Worth will continue to claim its place as one of the busiest apartment markets in the country.
As informed investors we should understand the risks associated with real estate investing and that there is no guarantee. Please do your due diligence.
Contact Estateserve today and realize your cash flow goals.