The median home sales price numbers for November have just been released and if you’re a potential home buyer hoping to see further price declines, you might not like this blog post!

In addition to sharing the latest home price information for both Frisco and Prosper, the conforming loan limits for 2023 are set to increase. I’ll share what the new loan limit is and explain how it impacts you if planning on buying a home in the coming year.

Continue reading below, or watch the following video, to learn more;

Home Prices Increasing?

As I mentioned above, many potential home buyers have been sitting on the fence, watching from the sidelines if you like, waiting to see how the local housing market plays out.

This is completely understandable considering the unprecedented rise in home prices over the last couple of years followed by the substantial jump in mortgage rates this year. Homes quickly became unaffordable. As a result, many buyers have been hoping for home prices to crash, mortgage rates to fall, or a combination of the two.

My goal isn’t to try and convince you one way or the other what to do, but to keep you updated on the latest market information here in Frisco and Prosper so that you can make the decision that’s best for you.

Everyone's situation is different and hopefully, this information will enable you to make the decision that’s best for you. So let's dive into the latest numbers!

This graph shows the median sales price for both Frisco, blue line, and Prosper, red line, over the past 3 years:

if you've seen any of my videos, or blog posts, from the past few weeks, then you'll know that home prices here in Frisco and Prosper have actually been treading water for the last couple of months.

Frisco’s prices peaked in April and then declined through August. Prosper’s prices peaked in May and then trended down until August.

Prices had been fairly flat since August but actually went up in November. The median sales price in Frisco was $630,000 in October and $650,000 in November. Prosper went from a median sales price of $790,000 in October to $822,000 in November.

I don’t think this is the start of a new trend by any means but is a sign that our local market could be starting to stabilize.

Another sign of more normal market conditions is the fact that homes are now selling for less than the list price. Good old-fashioned negotiating is back. At the peak of the frenzy, homes in Frisco and Prosper were selling for an average of 110% of the list price due to the bidding wars. Now, homes are selling for an average of 96% of the list price.

Additionally, the number of homes receiving price reductions before going under contract has started to come down. As mortgage rates rose market conditions changed quickly. Buyer activity ground to a halt leaving sellers no choice but to reduce their list price if they really needed to sell.

The chart below, for Frisco, shows how rapidly price reductions rose before finally starting to turn the corner and level out;

Here is the same price reduction graph for Prosper

The fact that the percentage of homes receiving a price reduction before going under contract has started to flatten and come down, tells us that the price of the homes currently listed for sale is getting closer to the buyer’s expectations of where they should be.

We still have a ways to go to get back to the price reduction percentage we normally see this time of year, but this is another indication of the market stabilizing.

New Construction

Some of the best buying opportunities in the market today exist with new construction homes. The builders ramped up construction during the pandemic due to demand. As you know, supply chain issues caused new construction build timelines to extend well beyond normal.

Many of those homes are now at or nearing completion, and the builders don’t want to be sitting on excessive inventory as the market shifts. As a result, the builders are being very aggressive to move this inventory. Below-market financing, design center incentives, and price reductions of up to $90,000 are common in our market right now.

CLICK HERE to see New Construction Opportunities in Frisco and Prosper

For information on the best builder incentives or to learn more about current opportunities, please don’t hesitate to email me or give me a call.

Conventional Loan Limits

Here are the updated conventional loan limits for 2023

The conventional loan limit represents the maximum loan value that will be backed by Fannie Mae or Freddie Mac. Any loan above these limits is considered a Jumbo Loan.

Please keep in mind the loan limit is not the purchase price, but the amount of the loan after your down payment.

For example, for a single-family home, the new loan limit is $726,200. if you were putting 20% down, you could purchase a home for just over $900,000 and still have a conforming loan.

While conventional loans do not necessarily have a lower mortgage rate than jumbo loans, they are more widely available, are easier to qualify for, and cost less than a jumbo loan meaning lower closing costs.

This is positive news considering home prices here in Frisco and Prosper.

Bottom Line

While our local housing market continues to show signs of stabilizing I do believe we could see further declines in prices, although there is nothing in the data currently to indicate we will see significant drops.

Many mortgage lenders I have spoken to believe the worst of the mortgage rate hikes are behind us and expect to see further mortgage rate declines as we head into 2023.

If we see home prices hold steady, or drop slightly, and mortgage rates fall below 6%, I expect to see overall market activity increase.

If you have a specific situation you would like to discuss further, or have additional questions, please feel free to Schedule a Call with me. I’d be happy to talk with you.

Newest Homes For Sale in Frisco and Prosper