Ok, so maybe the Frisco and Prosper real estate markets aren’t exactly in a pickle, maybe it’s more of a catch-22! To some of you, this might come as a surprise. After all, for all intents and purposes, the real estate market has been, and remains, very strong. Saying that, ask anyone who has been looking to buy a home recently and you’ll hear stories of frustration due to a lack of homes for sale, bidding wars, and being forced to make decisions in a matter of hours. Forget about having a few days to think about it. To learn more about how we got here, and what you can do to best navigate the current market, continue reading below or watch the following video.

How Did We Get Here?

To understand how we got here we have to go back, back way before Covid, as for much of the last decade the real estate market has had strong demand with falling supply. New home builders hadn’t really caught up from the real estate market crash as the number of homes being constructed annually was still below pre-crash levels. Fast forward to 2020 and the real estate market started the year strong. All expectations were that it would be a very busy spring and summer season. Then, Covid hit and uncertainty ruled the day. Rather than lead to a real estate market downturn, as many predicted, it was more a case of the pause button being pressed and then play resuming after a 6 to 8 week hold.

Rather than the real estate market faltering the pandemic caused the real estate market to accelerate. The typically busy spring season simply shifted to summer and summer to fall. What the stay-at-home orders of the pandemic did do is make many people reassess their current living situation. Many realized, as working and schooling from home were becoming the new normal, that a change to the current living situation was needed. Add falling mortgage rates to historically low levels due to economic uncertainty and buyer demand increased substantially. Problem is, sellers didn’t follow. Some sellers didn’t want to list their home for sale during the pandemic to have strangers walk through it, while other potential sellers took a wait and see approach. What inventory there was in the market began to rapidly disappear and attention turned to new home builders. The problem now is even the new home builders don’t have enough inventory and are having to delay phase releases and slow down sales due to not being able to build homes fast enough to satisfy demand. One builder in a community I visited last week said they won’t be releasing any new lots until March while another said they are limiting sales to just 4 homes per month.

The Latest Numbers

You don’t need to look beyond the pace of appreciation, days on market, and total available inventory to get a good idea of the state of the current market;

Median Home Price

Frisco is up 18.1% YOY while Prosper is up 10.9%

Days on Market

The average days on market is Frisco is 29, while the average days on market in Prosper is 23
*Keep in mind the average days on market is the average for all price ranges- $300k to $7 million

The median days on market for Frisco is 7, while the median days on market for Prosper is 4
If it seems like the majority of homes are selling in a matter of days it’s because they are.

Months Supply

Months supply represents the amount of time it would take to sell all activity listings at the current pace of sales, assuming no new homes are listed. 6 to 7 months supply is considered a “balanced” market.

Currently, in Frisco, there is a 0.6 month supply and in Prosper a 0.4 month supply.

The Pickle

For those currently in the market to buy you know how incredibly difficult it is right now. I was showing homes 2 weeks ago in the $1.4 million dollar price range and multiple offers had been received within 2 days of the property being listed. This is being experienced at all price points. Competition is fierce and looking at new construction is no better.

For those considering selling, the question becomes where do you go? If you put your home on the market chances are it will be sold within a week. If you do that, considering there is so little for sale, where are you going when your house closes? Most sellers don’t want to have to move into an apartment or face a double-move if they don’t have to. One option for sellers is to request a rent back from your buyers. If your buyers are currently in a rental property it is possible they might be able to extend their lease and allow you to rent your home from them until it’s time to move into your new home. If you are buying a new home you might have to consider selling your home, so you know that part is done, and move into a short-term apartment rental. Not ideal, but an option. Here’s a link to a recent video I recorded on tips for Selling Your Home in a Sellers Market

For buyers, in order to increase your chances of being successful, you want to make sure you are as prepared as possible upfront. When a home comes on the market you are going to need to act fast. In order to ease some of the pressure, it will be necessary to do your research on neighborhoods, schools etc. in advance. Here is a video I recorded with Tips for Getting Your Offer Accepted

Bottom Line

Although difficult, it is not impossible to achieve your real estate goals in the current market. The most important aspect is having a plan and being prepared. If you’d like to discuss your real estate goals in more detail please feel free to Schedule a Call with me for a no-cost, no-obligation consultation.