November 2024 Frisco Real Estate Market Update: What's Happening Post-Election?

With the presidential election behind us and a recent rate cut from the Federal Reserve, many are asking, "What’s next for the real estate market?" Whether you're buying, selling, or just keeping tabs, it’s important to stay informed on national trends and how they might impact you locally in Frisco. This blog provides a comprehensive look at the key market forces at play, both nationally and here at home.

To dive deeper into these insights, check out my complete market update video!

National Market Trends and Forecasts for 2025

1. Mortgage Rates: What’s Ahead?

Mortgage rates have remained higher than initially expected, creating a challenge for many prospective buyers and impacting overall demand. However, experts anticipate a gradual decline through 2025.

The chart highlights projections from industry leaders on where rates may be headed.

What This Means for You: While we’re unlikely to see a return to the ultra-low rates of 3%, more and more experts believe that rates around 5.5% may become the new normal going forward. This adjustment underscores the importance of staying informed and prepared when considering a purchase or refinance.

2. Home Prices: Resilient Due to Low Supply

Despite higher mortgage rates cooling demand, home prices have not fallen. Why? It all comes down to supply. The housing market has been constrained by a shortage of new construction, which has kept inventory levels well below historical norms.

The graph shows projected home price appreciation rates from major industry leaders.

Takeaway for Buyers and Sellers: While prices may not soar as they have in the past, steady growth still represents a valuable opportunity for homeowners and potential buyers alike. Acting now may help you avoid higher costs in the future as appreciation continues, even if at a slower rate.

Here’s the latest projection for national home price appreciation in 2025:

3. Distressed Properties? Not Like Before

There have been some concerns about an increase in distressed properties due to economic challenges and inflationary pressures. However, there is a significant factor that differentiates today’s market from the housing crash of 2007-2009: homeowner equity.

The data shows that homeowners today have record levels of equity, acting as a buffer against distressed sales.

The Key Difference: Unlike during the Great Recession, most homeowners have built significant equity, making it less likely for them to default on their mortgages. This factor contributes to market stability and further supports the expectation of price appreciation in the coming year.

Wondering how much equity you’ve gained over the past few years? CLICK HERE to find out instantly!

Local Market Focus: Frisco’s Real Estate Landscape

Now, let’s shift our attention to what’s happening closer to home in Frisco. As we move deeper into the holiday season, the market is following a predictable seasonal trend, with a dip in activity. However, there are still key dynamics to be aware of.

Unlike many markets, Frisco’s lack of resale inventory has been offset by the amount of new construction supply we have locally. As a result, Frisco home prices have remained fairly flat this year, following the normal seasonal trends:

Consider This: While the pace of price appreciation has moderated, well-priced homes continue to move quickly. If you’re considering selling, timing and pricing remain critical.

Frisco Housing Inventory Levels

Although inventory has grown compared to recent years, it remains below historical levels. As mentioned, abundant new construction in this area has prevented home prices from continuing to soar.

Opportunity for Buyers: With fewer listings on the market, competition can feel intense. However, motivated sellers and quick move-in new construction homes present unique opportunities for savvy buyers looking to lock in favorable terms before the end of the year.

It doesn’t appear as though much will change as we head into this year considering DFW has just been named the hottest real estate market in the country for 2025! CLICK HERE to see the complete article.

Have specific questions or need tailored advice? Reach Out Here to schedule a free 30-minute consultation and let’s discuss your unique situation.