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.
What is the latest report on the Frisco housing market?
According to Realtor.com, Frisco, TX is identified as a buyer's market. This designation implies that the supply of homes exceeds the current demand, providing potential buyers with more choices and negotiating power. Understanding the market dynamics is essential for making informed decisions, and in this scenario, buyers may find themselves in a position of strength.
Median Listing Home Price: A Snapshot
As of December 2023, the median listing home price in Frisco, TX stands at a substantial $714.9K, showcasing a slight -2.7% year-over-year decrease. This figure provides a glimpse into the current pricing dynamics, indicating potential opportunities for both buyers and sellers in the market.
Sale-to-List Price Ratio: Favorable Dynamics
One notable aspect of the Frisco, TX housing market is the impressive sale-to-list price ratio of 99.45%. This statistic suggests that homes in Frisco, TX are selling for nearly the asking price on average, underscoring a balanced relationship between buyers and sellers. In a market where negotiations often play a crucial role, this ratio signifies a favorable environment for both parties involved.
Median Days on Market: Understanding the Trend
For those keen on understanding the pace of transactions, the median days on market in Frisco, TX is a key metric. On average, homes in this city sell after 63 days on the market. While this represents a snapshot of the current scenario, it's crucial to note that this figure has seen a slight increase from the previous month. However, when compared to the same period last year, there is a marginal decrease, indicating a nuanced trend in the market.
Frisco Housing Market Forecast for 2024
According to Zillow, the average home value in Frisco stands at $654,826, reflecting a 1.8% increase over the past year. This upward trajectory is indicative of the city's robust real estate market.
Key Housing Metrics
For Sale Inventory (December 31, 2023):
The inventory available for sale in Frisco as of December 31, 2023, is 457. This metric is crucial in understanding the supply-demand dynamics in the market.
New Listings (December 31, 2023):
In December 2023, Frisco witnessed 121 new listings. New listings contribute to the overall inventory, impacting the choices available for potential buyers.
Median Sale to List Ratio (November 30, 2023):
The median sale to list ratio, a significant indicator, stands at 0.984 as of November 30, 2023. This ratio showcases the relationship between listed and sold prices.
Median Sale Price (November 30, 2023):
As of November 30, 2023, the median sale price in Frisco is $616,667, providing a benchmark for understanding the pricing trends in the market.
Median List Price (December 31, 2023):
The median list price, representing the midpoint of all listed prices, is $686,633 as of December 31, 2023.
Percent of Sales Over and Under List Price (November 30, 2023):
Examining the sales dynamics, 18.6% of transactions in November 2023 were over the list price, while 64.3% were under the list price. These percentages offer insights into market competitiveness.
Market Analysis: Buyer's or Seller's Market?
With the current metrics, Frisco appears to be in a seller's market. Limited inventory and a significant percentage of sales below list price suggest that sellers hold a favorable position in negotiations.
Are Home Prices Dropping?
Despite a slight 1.8% increase over the past year, the market does not indicate a significant drop in home prices. The stability suggests a resilient housing market in Frisco.
Will This Housing Market Crash?
Given the current data, there is no immediate indication of a housing market crash in Frisco. However, ongoing monitoring is crucial as real estate markets can be influenced by various external factors.
Is Now a Good Time to Buy a House?
For potential buyers, the current scenario presents challenges with a seller's market, but individual circumstances and long-term goals should guide the decision. Consultation with real estate experts is advisable for personalized advice.
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.