If you're wondering about the current Frisco housing market trends, you've come to the right place. As of December 2024, the Frisco real estate scene is showing signs of cooling down, with a slight dip in median home prices. However, it's not a simple story. We’re seeing some interesting shifts that could impact both buyers and sellers. Let's break it down.
Current Frisco Housing Market Trends: A Deep Dive
Nestled in the heart of one of Texas's fastest-growing regions, Frisco has become a hub for families, professionals, and investors alike. This year presents a mix of opportunities and challenges as market dynamics shift in response to economic conditions and consumer preferences.
I've been following the real estate market closely, and I've seen how quickly things can change here in North Texas. So, I wanted to share my insights on the latest numbers and what they might mean for you, whether you're looking to buy, sell, or just keep tabs on the local market.
Home Sales
One of the first things I always look at is the number of homes being sold. It gives a good indication of overall market activity. According to Redfin, in December 2024, Frisco saw 187 homes sold, a significant increase of 25.5% compared to the same time last year, when only 149 homes were sold. This jump in sales suggests a continued interest in the area, which is great news. It means that people are still wanting to move to Frisco.
- Homes Sold (Dec 2024): 187
- Year-over-year Growth: +25.5%
Home Prices
Alright, let's talk about what's on everyone's mind: home prices. The median sale price in Frisco last month was $705,000. Now, here’s the interesting part – this is actually down 4.1% compared to the median price last year. While this might be good news for buyers hoping to snag a deal, it's important to remember that we're talking about median prices. This means some homes are selling for more and some for less.
It is essential to note that the median price per square foot has seen a year-over-year increase of 5.0%, sitting at \$254. This suggests that while the overall median price might be down, the cost of space in Frisco has actually gone up.
- Median Sale Price (Dec 2024): $705,000
- Year-over-year Change: -4.1%
- Median Price per SqFt (Dec 2024): \$254
- Year-over-year Change: +5.0%
Housing Supply
The housing supply is always a crucial piece of the puzzle. While the data doesn't give us the exact number of homes on the market, it does give us some hints. The fact that homes are still selling, and the number of sales is up, indicates that there is still inventory in Frisco. We are still seeing homes being listed, even though some other areas may have experienced fewer listings.
Market Trends
The current market trend in Frisco indicates a shift toward a more balanced market. The fact that homes are taking slightly longer to sell (56 days on the market compared to 51 days last year) and that more homes are experiencing price drops points to less intense competition. Here are a few key trends I've noticed:
- Days on Market: The median time a home spends on the market in Frisco is 56 days. This is slightly longer compared to the 51 days last year. This increase in days on market suggests buyers have slightly more leverage than they did before.
- Sale-to-List Price Ratio: The average home is selling for 97.6% of the list price, which is practically at the listing price, with a minimal increase of +0.1 pt year-over-year. This indicates that most homes are selling close to the asking price.
- Homes Sold Above List Price: Only 9.1% of homes sold above the list price. This is down by 3.0% year-over-year. This statistic is a crucial indicator that bidding wars are becoming less common, creating a more favorable environment for buyers.
- Homes with Price Drops: A significant 31.3% of homes in Frisco are experiencing price drops, which is up a whopping 10.1 points compared to last year. This rise could signal that sellers are starting to adjust their expectations to meet the changing market conditions.
Is Frisco a Buyer's or Seller's Housing Market?
Based on the data, I'd say the Frisco housing market is moving towards a more balanced scenario, though still leaning slightly towards a seller's market. While the dip in median home prices and the increase in days on the market might sound like a buyer's dream, remember that homes are still selling close to the asking price and the market is still fairly competitive, with an average of 1 offer per home.
I believe, the slight drop in home prices, coupled with homes staying on the market a bit longer, is starting to give buyers more negotiating power. However, with the increase in the number of homes sold, it's not quite a buyer's market just yet. It’s crucial for both sides to be informed and strategic.
Are Home Prices Dropping?
Yes, the data shows that median home prices in Frisco have dropped by 4.1% year-over-year. However, it's not a dramatic plunge. It's a moderate adjustment in a dynamic market.
The fact that the median price per square foot has actually increased by 5.0% year-over-year, indicates that the drop is probably due to a change in the type of homes being sold, rather than a huge drop in prices across the board. Some price drops were also driven by sellers trying to get a sale.
It's also important to consider the bigger picture – the market is still quite active, and Frisco is still a desirable place to live. I don't see this as the start of a large-scale housing crash. Instead, it looks more like a necessary correction after a period of rapid price appreciation.
Here's a quick summary in a table:
| Statistic | December 2024 | YoY Change |
|---|---|---|
| Median Sale Price | $705,000 | -4.1% |
| Median Price per Sq Ft | \$254 | +5.0% |
| Homes Sold | 187 | +25.5% |
| Median Days on Market | 56 | +5 days |
| Sale-to-List Price Ratio | 97.6% | +0.1 pt |
| Homes Sold Above List Price | 9.1% | -3.0 pt |
| Homes with Price Drops | 31.3% | +10.1 pt |
Migration Trends
I found the migration trends fascinating. It seems that people are still moving into Frisco, mainly from locations like Los Angeles, San Francisco, and Seattle. This suggests that Frisco’s draw is not diminishing. Here's a quick look at in-migration trends to Frisco:
- Top Inbound Metro Areas:
- Los Angeles, CA (1,688)
- San Francisco, CA (1,055)
- Seattle, WA (918)
Interestingly, people are also moving out of Frisco, primarily to Phoenix, Austin, and Houston. This may be due to several factors, such as job opportunities and lifestyle choices. The top outbound metro areas include:
- Top Outbound Metro Areas:
- Phoenix, AZ (1,945)
- Austin, TX (1,097)
- Houston, TX (735)
This migration data shows Frisco is still a hub with people coming in, but also moving out for different reasons. It gives us a glimpse into the dynamism of the market.
My Thoughts
From my own experience working in the North Texas real estate market, I've found that Frisco's market is highly influenced by the local economy, job growth, and the quality of schools. These factors are still robust. The dip in prices, I feel, is more of a recalibration than a crash.
I believe the current market is ideal for those who are patient and prepared. For buyers, there's now a better chance to negotiate and find a good deal. For sellers, it's important to price your property strategically and be willing to work with buyers.
Frisco Housing Market Forecast 2025-2026
If you're wondering what the future holds for the Frisco housing market, here's the deal: While predicting the future perfectly is impossible, the current trend suggests a continued, though possibly slower, growth in home values for the next couple of years. The market won't be seeing massive price jumps, but steady appreciation is anticipated based on available data as of late 2024.
I always like to start with a look at the present. Right now, the average home value in Frisco, TX stands at $671,173. That's according to Zillow's Home Value Index as of late 2024. What’s interesting is that, over the past year, we’ve seen only a 1.9% increase in home values. This is a significant shift from the rapid growth we saw in previous years. Homes in Frisco are also going to pending in around 42 days. I think this indicates a cooling down period where things are settling down after a hot market.
Looking Ahead: My Thoughts on 2025 and 2026
Based on this data and my experience following the Frisco market, here's what I'm anticipating for the Frisco housing market in 2025 and 2026:
- Moderate Appreciation: I don't expect to see the double-digit price increases of recent years. Instead, I believe we'll see modest gains in home values. We’re possibly looking at a continuation of the trend of 1.5% – 3% increase per year. This is not bad and shows a healthy and sustainable real estate market.
- Inventory Balance: The current trend indicates that there are more homes on the market, and less buyers. I anticipate that we will reach a more balanced market where neither buyers nor sellers have significant leverage. This is good for everyone involved as buyers get to choose better and sellers don't have to compromise too much.
- Interest Rate Impact: Mortgage rates are a huge factor. If rates go down in 2025 or 2026, it could spur more demand, potentially pushing prices up a bit. Conversely, if rates stay high or increase, it could keep a check on price increases. It's important to keep an eye on this one!
- Local Economy Matters: Frisco's economy is generally considered strong. The continued growth of businesses and job opportunities will keep Frisco attractive, which translates into a demand for housing. The housing demand will keep increasing.
- Demographics Drive the Market: The Dallas-Fort Worth metroplex is a huge magnet for people moving in. This continuous influx of residents will keep the real estate sector very robust in coming years, and Frisco will continue to be one of the favorite destinations for many.
Key Factors Influencing the Frisco Housing Market
To recap, let's look at the key elements that will shape the future of Frisco housing:
- Interest Rates: As mentioned above, this is a crucial factor.
- Economic Growth: A robust local economy helps create more job opportunities, and more home buyers.
- Inventory Levels: The number of homes for sale versus the demand will decide the price increases or decreases.
- Population Growth: The growing influx of people into the Dallas area will definitely increase the number of home buyers.
Is Now a Good Time to Buy or Sell in Frisco?
I always advise people to make a decision based on their personal situation and needs. If you're a buyer, remember to do your homework and get pre-approved before you start looking at houses. And, if you're thinking about selling, make sure your home is in great condition and that you have a good agent working for you!
Final Thoughts
I think that the Frisco real estate market will remain strong over the next couple of years. The pace of growth may have slowed down, and we are definitely not experiencing that ‘hyper' growth anymore. Still, I think it's a sound place to invest in real estate.
Should You Invest in the Frisco Real Estate Market in 2025?
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.
