What Does 2025 Hold for the Frisco Real Estate Market?

As 2024 comes to a close, it's time to reflect on a year that didn’t go quite as many expected. Mortgage rates remained higher for longer, and the price drops many buyers were hoping for? They never materialized. But what about 2025? Let’s explore the expert forecasts, current trends, and what they mean for the Frisco, TX real estate market.

Mortgage Rates: What’s Next?

After a year of persistently high rates, experts anticipate some relief in 2025—but not a return to the historic lows many buyers dream of. According to Odeta Kushi, Deputy Chief Economist at First American:

This slight decline could boost affordability, ease the "rate lock-in" effect for sellers, and potentially unlock more inventory. But don’t get your hopes up for a dramatic drop. As Lawrence Yun, Chief Economist at the National Association of Realtors, explains:

For more detailed insights into what this means for buyers and sellers, be sure to watch my full December Market Update below.

Projections for 2025 Mortgage Rates

Experts from Fannie Mae, the Mortgage Bankers Association, and Wells Fargo are forecasting rates to stabilize slightly lower throughout the year, as shown in the table below:

While rates are predicted to drop slightly, affordability challenges will remain a critical factor for many buyers in the market. I dive deeper into this topic in the video, including strategies to navigate the higher-rate environment.

What About Home Prices?

Unlike rates, home prices are expected to appreciate modestly in 2025. The latest forecast averages project a 3.1% increase nationwide, signaling a return to a “normal” market cycle.

This trend underscores the importance of local market knowledge. While prices may remain flat in Frisco, our inventory situation tells a unique story. Watch the video to learn how builders are shaping the market and why demand for new construction homes remains strong.

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Local Market Spotlight: Frisco, TX

Here in Frisco, inventory levels remain tight compared to pre-pandemic norms, and new construction continues to play a key role in meeting demand. If you're considering buying or selling a home, understanding these hyperlocal dynamics is critical.

I cover these dynamics in great detail in the video and all share how you can receive personalized market updates specific to the city or zip code. you are most interested in. Whether you’re planning to make a move in 2025 or just staying informed, this information is a game-changer.

Final Thoughts

2024 may not have brought the dramatic shifts some expected, but it set the stage for a more stable and predictable 2025. If you’re curious about what these trends mean for your plans, let’s chat. Schedule your free 30-minute consultation today!

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