Unless you’ve been living underneath 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 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, newly renovated Downtown area, and the revamped coming soon 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 hot real estate market
Prices are at an all-time high and availability 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 that opportunity to acquire a loan.”
Limited availability of inventory and work-at-home trend increasing wait time
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… With a consistent shortage of timber and manpower, most home building contractors are well behind their schedule and have buyers waitlisted as far back 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 the Judi Wright Team
Judi Wright/The Judi Wright Team is a real estate group specializing in the suburbs of Frisco, Plano, and surrounding areas. Named the “Best Realtor in Dallas,” by D Magazine fifteen times and a Five Star Realtor with Texas Monthly ten times. Judi is also a Company-Wide Top Performer with Ebby Halliday, a Berkshire Hathaway affiliate.