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 2024, including home values, and real estate trends.
How is the Frisco Housing Market Doing Today?
According to Realtor.com, as of February 2024, Frisco, TX is classified as a buyer's market, signifying that the supply of homes exceeds the current demand. This scenario offers buyers an advantageous position with a variety of housing options to explore.
Median Listing Home Price and Price per Square Foot
In February 2024, the median listing home price in Frisco, TX stands at an impressive $700K, reflecting a slight downward trend of -2.6% compared to the previous year. This decline offers potential buyers an advantageous position in negotiating home prices. The median listing home price per square foot is $260, providing a key metric for evaluating property values in various neighborhoods within Frisco.
Sale-to-List Price Ratio
The sale-to-list price ratio in Frisco, TX is recorded at 97.87%. This indicates that, on average, homes are selling for approximately 2.13% below their asking prices. For buyers, this presents an opportunity to secure properties at prices slightly below the initial listing, contributing to a balanced market dynamic between buyers and sellers.
Median Days on Market
The median days on market for homes in Frisco, TX is 31 days. This metric measures the average time it takes for a property to transition from listing to sale. The trend over the past month indicates a decrease in the median days on market, showcasing a swift pace in real estate transactions. Additionally, this figure has slightly decreased compared to the previous year, underlining the active and dynamic nature of the Frisco housing market.
Frisco Housing Market Forecast for 2024 and 2025
According to Zillow, as of January 31, 2024, the Frisco housing market is displaying a robust performance, with the average home value standing at $660,991. This represents a 2.8% increase over the past year, highlighting the city's resilience in the real estate sector.
Days on Market
One key indicator of the Frisco housing market's vitality is the speed at which homes are going to pending status. On average, homes in Frisco take approximately 29 days to move from listing to pending, showcasing a brisk pace in the property transactions.
Inventory Snapshot (January 31, 2024)
- For Sale Inventory: 421
- New Listings: 120
Price Metrics
Understanding the median sale price and list price provides valuable insights into the affordability and demand in the Frisco housing market.
- Median Sale Price (December 31, 2023): $610,279
- Median List Price (January 31, 2024): $683,317
Sale to List Ratio (December 31, 2023)
The sale to list ratio, a key metric indicating the relationship between the listed and sold prices, stands at a favorable 0.981, underscoring a balanced and competitive market environment.
Market Dynamics (December 31, 2023)
Examining the distribution of sales prices relative to the list prices provides further insights into the competitiveness of the Frisco housing market.
- Percent of Sales Over List Price: 15.5%
- Percent of Sales Under List Price: 70.3%
Are Home Prices Dropping in Frisco?
Contrary to a downward trend, the Frisco housing market is witnessing a positive trajectory in home prices. The average home value of $660,991, with a 2.8% increase over the past year, signifies a stable and appreciating market. Homebuyers and investors can take confidence in the market's resilience, as property values continue to strengthen.
Will the Frisco Housing Market Crash?
As of the current data, there is no indication of an impending housing market crash in Frisco. The steady growth in average home value and the balanced sale to list ratio suggest a robust and sustainable market. However, it's essential to monitor economic and market conditions regularly for any potential shifts that could impact the stability of the real estate sector.
Is Now a Good Time to Buy a House in Frisco?
Considering the current state of the Frisco housing market, now appears to be a favorable time for prospective homebuyers. With a balanced market, reasonable median sale prices, and a competitive sale to list ratio, buyers have opportunities to make well-informed decisions. However, individual circumstances and preferences should always be taken into account when determining the optimal time for a home purchase.
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.
Sources:
- https://www.zillow.com/home-values/18208/frisco-tx/
- https://www.redfin.com/city/30844/TX/Frisco/housing-market
- https://www.realtor.com/realestateandhomes-search/Frisco_TX/overview