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October 2nd, 2019 by Marco Santarelli
How is The Frisco Real Estate Market in 2019?
If you’re keen to invest in the Frisco real estate market 2019 and buy before prices become out of reach, you must read till the end. Real estate market booming in the state of Texas and housing experts see positive trends in the Frisco market.
Frisco, Texas made national news when it hit first place on the Money Magazine list of best places to live in 2018. However, Frisco has benefited from a number of trends as well as wise leadership that got it to this point – and will keep it on the top ten list for quite a while.
Frisco is a northern suburb of Dallas, Texas. It is about 25 miles north of the biggest city in the Dallas-Fort Worth area. It borders Plano, Texas. The city is divided between Denton and Collin Counties. The population of Frisco is approaching 200,000.
We can’t really say that the Frisco real estate market is larger than this, since it is both a suburb of Dallas and surrounded by other suburbs. Prosper cities on its northern edge, though Frisco itself can expand to the northwest before it is hemmed in by existing towns.
The Frisco area is slowly growing and has excellent long term prospects. Is Frisco going to be one of the hottest real estate markets for investors in 2019 & 2020? Let’s take a deep look at the latest Frisco housing market trends to come to a conclusion.
Frisco Real Estate Market Forecasts 2019 & 2020
The real estate data from Zillow shows that the median home value in Frisco is $396,500. Frisco home values have gone up 0.5% over the past year and their Frisco real estate market prediction is that the prices will fall -0.1% within the next year. The median list price per square foot in Frisco is $157, which is higher than the Dallas-Fort Worth-Arlington Metro average of $139.
The median price of homes currently listed in Frisco is $468,999 while the median price of homes that sold is $425,000. The median rent price in Frisco is $2,200, which is higher than the Dallas-Fort Worth-Arlington Metro median of $1,750.
Here is the Frisco, TX real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of -0.1% till Aug 2020.
Frisco Real Estate Market Trends
Frisco home prices are still on the rise, but other areas of the city’s real estate market are slowing down. Since June 2018, the number of homes sold in Frisco decreased by as much as 35% compared with the previous year, according to data from the Collin County Association of Realtors.
Currently, Trulia has 1,802 resale and new homes for sale in Frisco, TX, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
In the past month, 375 homes have been sold in Frisco on Redfin.com. In addition to houses in Frisco, there were also 8 condos, 71 townhouses, and 7 multi-family units for sale in Frisco last month. As per their real estate data, Homes for sale in the Frisco housing market have a median listing price of $459,000. Some of these homes are likely to sell quickly.
There are 2,201 homes for sale in Frisco, TX on Realtor.com. 139 of which were newly listed within the last week. Additionally, there are 393 Frisco rentals for sale, with a range of $875 to $10K per month. According to their statistics, in August 2019, the Frisco housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
The median list price of homes in Frisco, TX was $437.5K in August 2019, flat year-over-year. The median listing price per square foot was $147. On average, homes in Frisco, TX sell after 70 days on the market. The trend for median days on market in Frisco, TX has gone down since last month, and slightly up since last year.
The median list price in Frisco, TX is $499,000 on Movoto.com. The median list price in Frisco was less than 1% change from September to October. Frisco’s home resale inventories is 586, which decreased 6 percent since September 2019. The median list price per square foot in Frisco is $163. September 2019 was $159. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.
Frisco, TX Single Family And Multi-Family Homes
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Frisco, TX is $438,408, which indicates that home prices in Frisco are well above the national average for all cities and towns in the United States. Single-family homes are single most housing type in Frisco.
Large four, five or more bedroom single-family homes are mostly found in the Frisco housing market. Owner-occupied, three and four bedroom dwellings, primarily in single-family detached homes are the most prevalent type of housing you will see in Frisco.
Currently, there are 1,768 single family homes for sale in Frisco, TX on Zillow. Additionally, there are 250 single family homes for rent in Frisco, TX. Under potential listings, there are about 1 Foreclosed and 3 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Frisco, TX Foreclosures And Bank Owned Homes 2019
As per the Frisco foreclosure data by Zillow, in Frisco 0.0 homes are foreclosed (per 10,000). This is lower than the Dallas-Fort Worth-Arlington Metro value of 0.3 and also lower than the national value of 1.2. The percent of delinquent mortgages in Frisco is 0.4%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Frisco homeowners underwater on their mortgage is 4.3%, which is lower than Dallas-Fort Worth-Arlington Metro at 4.4%.
There are currently 54 properties in Frisco, TX that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 890. In August 2019, the number of properties that received a foreclosure filing in Frisco, TX was 10% higher than the previous month and 31% lower than the same time last year.
Best Neighborhoods to Invest in Frisco Rental Real Estate
If you are looking to invest in the Frisco rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Frisco rental real estate and you should be able flip it for a lump sum profit.
When looking to invest in Frisco real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Frisco rental property should be low. The neighborhoods in Frisco must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 18 elementary schools, 18 middle schools, 14 high schools and 11 private & charter schools in Frisco, Texas. Frisco has above average high schools. There are 11 neighborhoods in Frisco.
Some of the best neighborhoods in or around Frisco, Texas are Grayhawk, Plantation Resort, Stonebriar, Sedona, Starwood, Pearson Farms, Newman Village, The Lakes, Starwood-Chamberlyne Place Village, Starwood Village, Willow Pond, and Starwood.
Chapel Creek has a median listing price of $1.3M, making it the most expensive neighborhood. Creekside At Preston is the most affordable neighborhood in Frisco, Texas with a median listing price of $324,000.
Here are the best neighborhoods to invest in Frisco rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest in Frisco Rental Real Estate?
Now that you know where Frisco is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Frisco a good place to invest in real estate?
Many real estate investors have asked themselves if buying a rental property in Frisco is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Frisco housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Frisco but we have collected ten evidence based positive things for those who are keen to invest in the Frisco rentals in 2019.
Investing in Frisco rentals will fetch you good returns in the long term as the home prices in Frisco have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Frisco real estate market which can help investors who are keen to buy an investment property in this city.
We’ll focus on real reasons to invest in the Frisco real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Strong Local Economy
Frisco borders Plano, Texas, a city that was ranked one of the richest cities in the United States thinks to its literal wealth of high paying jobs. It has a high median income, and that actually goes quite far compared to other “wealthy” metro areas thanks to Texas’ low cost of living. This is why Frisco has had five and six percent annual growth for the past ten years.
2. The Ripple Effects of No Income Tax
Texas doesn’t have a state income tax. This has led an increasing number of companies to move to Texas, and many settle in the northern side of Dallas-Fort Worth because it is close to both DFW international airport and the Alliance cargo airport plus everything else a big company needs.
This is fueling migration to the Dallas area by residents. And as a property owner, you won’t have to pay state or local income taxes. This is attracting investors to the Frisco real estate market.
3. The Relatively Low Property Tax Rate
Texas still needs to generate revenue to pay for local government, predominately the school districts. They do this through the sales tax and one of the nation’s highest property tax rates. The state average for property taxes is a 1.931 percent assessment on the home.
In Denton County, the home of Frisco, it is 2.091 percent. However, property taxes are relative. The Frisco real estate market has a lower property tax bill than surrounding areas. For example, the same home in Dallas County would have a 2.173 percent property tax rate.
Plano in Collin County has a 2.107 percent property tax rate. This opens up the option of searching for Frisco real estate investment properties in the slightly cheaper part of town when it comes to property taxes. Ironically, Frisco students don’t all attend Frisco ISD.
Some are assigned to Prosper Independent School district. This means you can search for a Frisco real estate investment property within the city with the lowest possible property tax bill, if that’s one of your deciding criteria.
4. The Strong Frisco Real Estate Appreciation
Single family homes in the Frisco real estate market appreciated by 5 percent in 2018. This is despite the average home price hitting 470,000 dollars. Conversely, we can’t say that a Frisco real estate investment property will be cheap, since the median home price in Texas is well below the national average.
However, this is pretty indicative of demand for homes in the Frisco housing market, since people are bidding homes past the half million mark though they can find something for half the price a half hour drive south.
It also explains why the Frisco housing market saw the median new home price skyrocket from less than 300,000 dollars in 2010 to roughly 500,000 today.
5. The Property-Owner Friendly Environment
Texas is a landlord-friendly state. Eviction for non-payment of rent is fast. Eviction for lease violations is straightforward. You can ask tenants to pay for repairs up to a certain amount out of their pocket.
One point in favor of the Frisco housing market is that the city hasn’t been ratcheting up the rules landlords have to follow or debating rent control like Dallas.
6. The Short Term Frisco Rental Market
Dallas has been a regional hub for business for well over a century, something furthered by the string of conventions held here and the growth of Fortune 500 firms in the area. This has fueled demand for short term rentals in addition to the steady demand by tourists and people looking for homes before relocating here permanently.
That’s why several Dallas suburbs are among the most lucrative real estate markets for AirBnB. One point in favor of the Frisco housing market is the city’s accommodation with short term rentals.
A Frisco real estate investment property rented out on AirBnB must have a city license, and you have to have a separate rental license for each such property. Rules regarding parking and local impact like noise ordinances are reasonable.
7. The Growing Student Market
The Frisco housing market is home to a literally growing student market, creating a ground floor opportunity for investors. The University of North Texas is located in Denton.
They’ve begun to expand at a location in Frisco intended to eventually serve five thousand students. Students in the area are also a ten to fifteen minute drive from the University of Texas at Dallas.
8. The Better Civic Planners
The Frisco real estate market is expensive because this is an incredibly desirable place to live. This is partially due to wise civic planning. For example, the city used a fractional sales tax to pay for public transit instead of bonds backed by property taxes.
They cultivated growth of the Stonebriar Centre mall to generate sales tax revenue, so that rate didn’t go up enough to hurt the average resident. They encouraged Fortune 500 companies to relocate here, generating commercial property tax revenue that led to an excellent school system.
Actually, they have one of the best school districts in the state. This generates demand in the Frisco housing market, because many people move here to escape from Dallas with both high crime and horrible schools.
9. The Diversified Frisco Real Estate Market
If you’re considering Frisco real estate investment, one point in favor of this area over other Dallas suburbs is the diversified real estate market. Frisco was one of the local pioneers in mixed use developments, walkable neighborhoods modeled off older downtown areas.
This is attractive to Millennials. Frisco is also rapidly building multi-family housing, though this is barely keeping up with demand. Yet the Frisco real estate market retains a large number of single family homes.
10. The Wealth of New Homes in Frisco
The Frisco real estate market is notable for the sheer abundance of new homes. More than ten percent of homes have been built between 2010 and 2015, one of the highest rates in the country. It is also building a massive number of new homes relative to the existing housing stock.
This results in a better overall value in the Frisco housing market for investors. Buy a new home knowing that it will last for years and won’t generate maintenance demands for a long time.
Frisco Real Estate Investment
Maybe you have done a bit of real estate investing in Frisco, TX but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Frisco real estate investment opportunity would be a key to your success. If you invest wisely in Frisco rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Frisco rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Frisco, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Frisco, TX. Frisco is a rapidly growing and appreciating suburb in the Dallas-Fort Worth area.
It is so desirable that it attracts locals relocating to the area in addition to those moving to Texas thanks to its lower tax burden, cheaper real estate and improved quality of life.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Frisco real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Rochester, NY. The Rochester real estate market is stable, offering slow appreciation, affordable properties to outsiders and good returns. It has strong, long-term potential that is only buoyed if NYC collapses. And this is one of the reasons why being everything the Big Apple isn’t is in your favor.
The Rochester real estate market exists in an area formerly derided as the Rust Belt. It has seen a decline in population though leveled out, with many moving to the suburbs full of colonial homes instead of dense inner cities.
The population decline means that there is little new home construction, though older housing stock is torn down. This means that there will not be a wave of new construction to meet an increase in demand, while removal of blighted areas and deteriorating housing stock is abandoned.
Another good market to choose for investment is Chico, CA. The Chico real estate market provides strong rental returns, a favorable legal and tax climate, and near certain and significant property appreciation. These are among a few of the reasons to consider Chico real estate investment over “hotter” real estate markets due for a correction.’
The Chico housing market is affordable when you compare it to the rest of California. The average property in the Chico housing market is selling for around 350,000 dollars. That is a hundred thousand dollars higher than the national average.
However, it is 150,000 cheaper than the average price of a home in Los Angeles. And you can buy three homes in the Chico real estate market for the price of one mid-market home in San Francisco. The Chico housing market is competitive with the more desirable Mount Shasta area.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
About Frisco https://en.wikipedia.org/wiki/Frisco,_Texas
Landlord friendly https://www.mashvisor.com/blog/5-most-landlord-friendly-states https://www.dallasnews.com/news/2016/09/28/dallas-makes-rules-tougher-on-landlords-with-new-housing-standards
No income tax https://www.thehtgroup.com/companies-moving-to-texas-2019 https://www.economist.com/special-report/2019/06/20/many-people-are-moving-from-california-to-texas
Low property tax bill https://smartasset.com/taxes/texas-property-tax-calculator#yIXjc0RKPW https://www.nitinguptadfw.com/single-post/2018/12/25/What-Is-The-Property-Tax-Rate-In-Frisco-Texas
Better civic planning https://www.niche.com/k12/d/frisco-independent-school-district-tx
Diversified real estate market https://communityimpact.com/guides/dallas-fort-worth/frisco/news/data-reference/2019/07/05/5-real-estate-trends-frisco-2019-2
Short term rentals https://www.summitdaily.com/news/frisco-approves-new-short-term-rental-ordinance https://www.dallasnews.com/business/real-estate/2019/02/13/renting-with-airbnb-can-be-lucrative-in-texas-but-it-also-might-be-raising-housing-costs
Wealth of new homes https://www.bizjournals.com/dallas/news/2017/08/29/frisco-ranks-as-top-u-s-real-estate-market.html
Growing student market https://www.collegesimply.com/colleges-near/texas/frisco https://www.unt.edu/story/innovative-new-partnership-leads-university-north-texas-build-frisco-campus
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