North Texas real estate – in particular, the Fort Worth real estate market 2011 – has fared quite nicely over the last six months, but it still has its share of struggles.
The summer months in Fort Worth saw home sales increasing in the double digits. September wasn’t so shabby either, as sales in this month were 14 percent higher than they were a year prior, according to the Texas A&M Real Estate Center.
Although the upswing in September home sales for the Fort Worth real estate market 2011 were impressive, it pays to note that sales the year before were plagued by expiring tax credits.
Taking a longer look at the market in Fort Worth, however, and it’s evident that problems still exist. Sales in Fort Worth during the first nine months showed a decline of three percent, with higher-priced homes dominating the market.
At the height of 2007 one-year averages for home sales in Fort Worth were more than 1,000. Currently, this number has declined to 656. Across the state, however, monthly home sales in August were higher than they were in both 2009 and 2010.
Slow Growth Examined
The slow growth experienced in Fort Worth tends to be a bit puzzling, as this area is still experiencing significant job growth. Sure, job growth here is slower than a few years ago, but the area is still seeing it take place.
It appears that the major factors for a slow recovery for the Fort Worth real estate market are tougher mortgage standards and a drop in confidence regarding home ownership. Foreclosures continue to plague the market, as well, and these numbers are running at nearly twice the historical norm.
Confidence issues in the Fort Worth real estate market are a result of consumers struggling to land a mortgage because of a lack of down payments and high credit scores. In fact, according to the National Association of Realtors, across the country 18 percent of all contracts to purchase a home were cancelled due to higher-than-average lending standards.
What is most interesting is that job market growth has affected one sector, and that’s the rental market. Apartment occupancy rates are on the rise, along with monthly rents. Texas A&M states that multi-family construction is up across the state, as well.