The Frisco TX real estate market has certainly seen some changes over the past year.

We’ve gone from rapidly rising prices and crazy bidding wars to mortgage rates not seen since the early 2000s and speculation that a price crash is on the horizon.

As a result, you might have put your home buying plans on hold until prices drop significantly, but that’s probably not the best strategy.

Watch the following video, or continue reading below, to find out why;

Trying to time markets, whether that be the stock market or housing market, usually doesn’t work out too well because we never know if we’ve reached the top, or hit bottom, until after we’ve already done so.

A recent survey from Zonda, a real estate market research firm, showed that 53% of millennials are still renting right now because they’re waiting for home prices to come down, but here’s the challenge: the most recent data shows that home prices may have already bottomed out and are actually on the rise again. Selma Hepp, Chief Economist at CoreLogic reports;

U.S. home prices rose by 0.8% in February… indicating that prices in most markets have already bottomed out.”

The latest data from Black Knight shows the same shift in home prices. This graph compares home price trends in November to those in February;

Nationally, home prices peaked in June 2022, but here in Frisco prices peaked in April 2022 with a median sales price of $760,000.

As mortgage rates rose, home prices in Frisco fell, with the majority of those price declines taking place between April and August. By October, the median sales price was 18% lower than in April.

The median sales price in March 2023 was $700,000, 8% lower than our peak price in April meaning we’ve already gained back 10% of what was lost.

Bottom Line

As mortgage rates continue to fall many of the home buyers that put their search on hold are returning to the market.

Although the number of homes for sale in Frisco is 41.5% higher than last year, we’re still down 286% compared to March 2020.

The large imbalance between supply and demand means home prices are unlikely to fall further this year and the latest expert forecasts are projecting normal levels of appreciation in 2024 and beyond.

If you have questions about the current market and want to know if this is the right time for you to consider buying a home, let’s schedule a call to talk about it.