Downtown Fort Worth Real Estate Market Softening?

Posted by Stiles Mund Group on Thursday, January 3rd, 2008 at 2:09pm.

Stating that the very market that you work day in and day out in is softening does not appear to be a smart business strategy for a Realtor. Then again I am a Rotarian and abide by their "4 Way Test"

1. Is it the truth?
2. Is it fair to all concerned?
3. Will it build good will and better friendships?
4. Will it be beneficial to all concerned?

So why volunteer this information. Well maybe the stats aren't as bad as they seem and maybe they present more of an opportunity than a challenge. Remember real estate is a commodity and if you can get in high or low, in the long run it still pays to play the game.
Here are some statistics comparing September through November of 2006 to the same date range in 2007.

Downtown Fort Worth Statistics
  09/06-11/06 09/07-11/07

For Sale

196 344
Sold 25 19
Pended 31 18
Avg. DOM 46 86

One could draw conclusions on this data until they were blue in the face. However, I believe that what has happened is that before downtown Fort Worth was such a small market gaining great popularity. The law of supply vs. demand allowed prices to rise as inventories were not meeting demand. What happens when supplies catch up or exceed demand?  People are able to purchase properties for less than they were previously or properties do not appreciate quite as fast as before.

Over time the market has responded with several new, and more affordable properties thus competing with the existing homes. So now while the statistics appear quite negative, what we are actually seeing is a response to new competition. I would be remiss to not mention that there has been a lot of shake-up, created mostly by media, that has led buyers to shy away from real estate a bit more recently than a year ago as well.
 
The largest challenge I see from the increasing supply of real estate downtown and lagging demand is that those who would like to purchase are going to need an agent that can convey the right message about the market. Sellers need to know that inventories are rising. Therefore they may not be able to realize such high appreciation rates as in the past, but downtown real estate is still appreciating and sellers will make money. Stocks do the very same thing, however sellers of homes are a bit more attached to their purchase and less likely to listen to the market.
 
Chris Faulkner’s prediction for the downtown Fort Worth real estate market for 2008?
 I think it’s a great time to get in on one of the most exciting and fastest urbanizing cities in the counry. In five years when you look back on your purchase decision you’ll be thrilled that you got in the game. But I am just one Realtor working downtown…
 
 I welcome your thoughts.
Chris Faulkner, Realtor
www.highrises.com - Fort Worth
Coldwell Banker Residential Brokerage
817-975-3300
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