Unless you’ve been living under a rock (in which case… congrats! That’s such a cheap and efficient option!), you know that lately, houses have been selling like toilet paper at the beginning of Covid.
The housing market has been taking us on a crazy rollercoaster ride this past year across America, and Frisco had a VIP ticket. With interest rates the lowest they’ve been in recent history, the Frisco real estate scene is not expected to stabilize for another year or so.
Local builders are scurrying about at full capacity, trying to meet the overwhelming demand while fighting over limited and costly supplies due to the pandemic. As Phil Crone, executive director at the Dallas Builders Association, so quaintly puts it, “It’s [the housing market] interesting, with price increases and supply chain issues… I’ve been doing this for 15 years, and I’ve never seen anything like it.”
Frisco development increases appeal to home buyers
Frisco is a sprawling city located in northwest Texas, a region that has seen tremendous growth over the past few years. Home to the Dallas Cowboys at The Star, the Ford Center, and the National Soccer Hall of Fame, Frisco has always been a popular destination for home buyers. But over the past year, it has catapulted to new levels. With the expected completion of the new PGA Headquarters and sprawling campus, the newly renovated Downtown area, and the revamped Grand Park, it’s no wonder Frisco’s housing market is popping! Pending sales have risen by a staggering 42%, and inventory dropped by over 70% during the span of just a year. The real estate market of Frisco is sending a clear message – we want to buy, buy, buy!
Market factors impacting the hot real estate market
Prices are at an all-time high, and availability is at an all-time low. Why is the market still so hot?
Low-interest rates spur demand
One of the main factors is that interest rates have never looked more enticing. Most new home buyers fear missing out and want to lock in on these historically low-interest rates, even if the asking price is above historical market value. Buyers can expect to see an appreciation of their property occur throughout their 30-year mortgage while still keeping their monthly payments low. The interest rate in Texas is currently hovering around 2.98%, a solid 2% lower than the rates reported in 2019. John Porizek, the land development manager with M/I Homes of DFW, has this to say about stabilizing the market. “Interest rates would have to continue to go up to slow the pace down. With the interest rate still being attractive, it allows first-time homebuyers the opportunity to acquire a loan.”
Limited availability of inventory and the work-at-home trend are increasing wait times
Even with the interest rates working in favor of buyers, it may take a while for the number of houses available to get back to normal. “I do think we’re past that first, initial, big increase in pricing, and things will start leveling off moving forward,” Mayor Jeff Cheney, who also owns a realty firm, stated, but he did warn, “I do expect there to be limited supply for at least the next 12 months.” His clients have been waiting weeks to months for the chance to tour a property, and they’re more than willing to wait! The pandemic has made commuting a thing of the past, which means the new work-from-home clients are lining up to buy houses in Frisco. With such tight competition, many are forced to make quick decisions or even make their purchase sight unseen.
Supply & labor shortages are constraining new home construction
Looking to avoid the market altogether and build a home? Good luck… Due to a consistent shortage of timber and manpower, most home building contractors are significantly behind schedule, with buyers waitlisted for as long as a year.
Frisco housing market to remain strong
Frisco’s budding real estate market is a testament to all the hard work the community and its leaders have put into building the infrastructure and amenities that are drawing so many new families to settle here. The pandemic has catapulted its growth to sizzling levels. The combination of the rising cultural acceptance of working from home, plummeting mortgage interest rates, and the fear of missing out sets the stage for Frisco’s housing market to continue setting records. Future residents of Frisco have made sure their message was heard loud and clear – home is an important part of their lives, and they’re willing to fight tooth and nail to get a good deal!
If you are looking to buy or sell a home in Frisco, you need an expert on your side who can navigate these crazy housing trends. Give us a call at 214-597-2985 and find out why 95% of our business comes from client referrals. We’ll show you what we can do for you.
About Judi Wright – Trusted Real Estate Expert
With over 50 years of experience in the Dallas-Fort Worth area and 23 years as a Real Estate agent, Judi is one of North Texas’ most trusted and accomplished real estate professionals. As an award-winning Top Realtor, she has built a reputation for excellence, integrity, and personalized service throughout Collin, Dallas and Denton counties (and beyond). Judi treats every client like family and works hard to deliver an experience worth recommending. References and testimonials are available upon request and Judi would be honored to earn your business.
