If you’ve been thinking about buying a home in Frisco, or the immediate surrounding area, you might have started questioning if buying a home in today’s market even makes sense.

Higher mortgage rates, rising home prices, and decreasing affordability have understandably caused many buyers to put their home search plans on hold.

Truth is, buying a house right now might not be the best option for some, but to make that decision it’s important to look past the current market and unpack the long-term benefits of homeownership.

If you were to ask someone who bought a home 5, 10, or even 20 years ago, you’d probably have a hard time finding someone who regrets that decision. Why? Because home values always grow over time and, by extension, help generate a tremendous amount of household wealth.

A recent Fannie Mae survey showed 76% of those surveyed believe buying a home is a safe investment. The challenge is knowing when to buy. Media headlines over the past year have scared everyone into believing the housing market was about to crash, which it hasn’t.

I’m certainly not saying home prices won’t ever come down (they actually fell 18% in Frisco between April and November 2022), but purchasing a home last year and securing a mortgage rate of 6% would have been a great deal compared to the market today.

While no one can accurately predict the market, as we’ve seen, home price appreciation can really add up over the years.

Home Price Appreciation Over Time

Here is a map with data from the Federal Housing Financing Agency (FHFA) that shows home price gains by region over the past 5 years:

On average, home prices increased by just over 57% nationally over a five-year period.

We all know home prices increased rapidly following the pandemic, so here is a broader view looking at home price gains since 1991:

Since 1991, home prices have grown nationally by just over 297% and in Texas by an average of just over 309%.

This graph shows how home prices in Frisco have changed over the past 10 years and clearly shows the home price drop I mentioned earlier that occurred last year:

For the past several months home prices here in Frisco have been rising again and the latest forecasts are projecting that to continue over the next several years.

Bottom Line

I recognize that affordability has become a major challenge for many potential buyers. While it doesn’t look like home prices are going to bring much relief in the years ahead, the current market does offer some unique opportunities to obtain below-market long-term mortgages. For additional information, or to see what options exist to help make your dream of buying a home a reality, schedule a call, and let’s talk about it.

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