Energy industry throws lifeline to Fort Worth's home market

ByABC News
December 9, 2008, 1:48 AM

— -- Existing home sales in Fort Worth were down drastically in October compared with a year ago. But it's not as bad as it seems.

Unlike many other parts of the nation, the housing market in the Fort Worth metro area was still sailing along in 2006 and 2007. "Our declines now are being magnified because they're measured against peak conditions," says James Gaines, an economist at Texas A&M University's Real Estate Center.

Even though home sales are down, the average time that homes are on the market is about six months, Gaines says. "That indicates a relatively strong market," he says. In addition, the Fort Worth market has never been overly inflated, as have other parts of the nation. Prices haven't skyrocketed, followed by extreme drops, says real estate agent Pamela Payne.

The metro area is considered affordable. The median home price is now down a bit, so despite the national financial storm, home buyers are moving ahead.

"I'm very busy," Payne says. "I'm probably doing better this year than the year before."

The strong local economy has helped spur home sales. "The oil and gas boom has been a blessing here," says Helen Collins-Epps, president of the Greater Fort Worth Association of Realtors.

Although the energy industry is still doing well, Gaines predicts that it's likely to hit a snag in the next 12 to 14 months.

Home prices may be a good deal, but home sales have fallen because buyers now need a down payment and a good credit score to get a mortgage. It's also more difficult for them to get jumbo financing to buy a high-price home, Gainer says.

Also, investors are buying fewer homes, and building has slowed. "It's going to be an unsettled time, but hopefully by the end of 2009, this market will gradually start going back up again," Collins-Epps says.

There is one thing in Fort Worth's favor. It remains a popular place to live and raise a family. As Payne puts it: "People enjoy Fort Worth because it's laid back, and there is a bit of Southern charm."