Frisco, a city in Texas, is one of the most popular places to live in the state. With its booming economy, excellent schools, and thriving real estate market, it's no surprise that many people are interested in buying or renting a home in this area. In this blog post, we will explore the Frisco housing market for 2023, including home values, and real estate trends.
Frisco Housing Market – August 2023 Overview
The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Let's explore the housing market trends in Frisco, TX for the month of August 2023.
- Median Listing Home Price: $738.5K
- Year-Over-Year Price Trend: 1.3% increase
- Median Listing Home Price per Square Foot: $248
- Median Sold Home Price: $649.9K
- Sale-to-List Price Ratio: 97.8%
- Median Days on Market: 36 days
In August 2023, the housing market in Frisco, TX is leaning towards being a buyer's market. This implies that there's a greater supply of homes compared to the demand, giving buyers more negotiating power. Homes sold for about 2.2% below the asking price on average, indicating a favorable situation for buyers.
However, the year-over-year increase in the median listing home price suggests a slight upward trend in prices, which is worth noting. The median days on market being 36 days on average also indicates a relatively brisk sales pace.
Frisco consists of 12 neighborhoods, each offering a distinct real estate landscape. Among them, Starwood stands out as the most expensive neighborhood with a median listing home price of $1.8M. On the other hand, Frisco Lakes is the most affordable neighborhood, with a median listing home price of $529K.
Is it a Good Time to Buy a House in Frisco, TX?
Considering the buyer's market conditions and the homes selling slightly below the asking price, August 2023 appears to be a favorable time for buyers to consider making a home purchase in Frisco, TX. It's important to monitor the market trends and act accordingly to secure a good deal.
Are Home Prices Increasing in Frisco, TX?
While there has been a 1.3% year-over-year increase in the median listing home price, suggesting a mild upward trajectory, the market is still favoring buyers. The overall scenario indicates a stable market with a potential for price growth in the near future.
Frisco Housing Market Forecast 2023-2024
Let's take a closer look at the housing market forecast for Frisco, based on data provided by Zillow through August 31, 2023.
- Average Frisco Home Value: $669,998
- Year-Over-Year Change in Home Value: -3.1%
- Median Time to Pending: 14 days
Zillow's data indicates that the average home value in Frisco is currently $669,998, reflecting a 3.1% decrease over the past year. Homes typically go pending in around 14 days, demonstrating a relatively fast-paced market.
Additional insights from Zillow as of July 31, 2023:
- Median Sale to List Ratio: 0.998
- Percent of Sales Over List Price: 39.7%
- Percent of Sales Under List Price: 43.5%
- Median Days to Pending: 14
The median sale to list ratio as of July 31, 2023, stands at 0.998, indicating a balance between list prices and sale prices. Additionally, nearly 39.7% of sales are reported to be above the list price, while about 43.5% of sales are below the list price.
Future Outlook and Predictions
While past data provides valuable insights into the housing market, predicting the future is challenging. However, based on the trends observed, we can make some projections for the Frisco housing market:
- Given the average home value decrease of 3.1% over the past year, it's possible that the market might see a period of stabilization or a gradual recovery in home values in the coming months.
- The median days to pending being 14 days indicates a fast-paced market. This trend is likely to continue, emphasizing the importance of quick decision-making for buyers.
- With nearly 39.7% of sales reported to be over the list price, it suggests a competitive market. Buyers should be prepared for potential bidding wars and consider making strong offers.
- Conversely, about 43.5% of sales under list price may indicate opportunities for negotiation for savvy buyers, especially in a market with a slightly decreased average home value.
Should You Invest in Frisco Real Estate Market?
Investing in real estate can be a lucrative opportunity for investors looking for a long-term investment strategy. The Frisco real estate market has been growing steadily in recent years, making it an attractive investment option for many. However, like any investment, it's important to weigh the potential risks and rewards before making a decision. Let us discuss five reasons why you should consider investing in the Frisco real estate market.
- Strong Economy: Frisco is located in the heart of the Dallas-Fort Worth Metroplex, which is one of the fastest-growing regions in the United States. The area has a strong economy with a diverse range of industries, including healthcare, technology, finance, and more. This has resulted in a growing job market and a steady increase in population, which bodes well for the local real estate market.
- High Demand: Frisco has experienced a high demand for housing in recent years, driven by the growing population and the strong job market. This has resulted in a low supply of homes, creating a competitive market for buyers. As a result, home prices have been steadily increasing, providing investors with the potential for long-term capital gains.
- Favorable Market Conditions: Frisco's market conditions, with a 2.3% value drop, swift sales, and varied sale outcomes, offer a dynamic landscape that can present both challenges and opportunities for investors.
- Stable Rental Market: Frisco has a stable rental market, making it an attractive option for investors looking for rental properties. The area has a low vacancy rate and a growing population, resulting in high demand for rental properties. This creates an opportunity for investors to generate passive income through rental properties.
- Future Growth Potential: Frisco is projected to continue growing in the future. According to the United States Census Bureau, Frisco's population grew by 71.1% between 2010 and 2020, making it one of the fastest-growing cities in the country. This growth rate indicates the potential for continued population growth and demand for housing in the future. This means that there will likely be continued demand for housing in the area, creating a favorable market for real estate investors.
- Texas' lack of state income tax is another reason why investing in the Frisco real estate market may be attractive to some investors. By not having to pay state income tax, residents of Texas have more disposable income, which they can use to invest in real estate, among other things. This can increase demand for housing in the area, which can drive up property values and make real estate investments more attractive. Additionally, the absence of state income tax can make investing in rental properties more profitable, as landlords can potentially generate more income without having to worry about state taxes on that income. As a result, the lack of state income tax in Texas is another factor that may make investing in the Frisco real estate market more appealing to some investors.
In conclusion, the Frisco real estate market has many attractive qualities for potential investors. With a strong economy, high demand for housing, favorable market conditions, a stable rental market, and future growth potential, Frisco is a promising option for those looking to invest in real estate. However, it's important to do your research and weigh the potential risks and rewards before making any investment decisions.
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.
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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.