Frisco Real Estate Market Update: August 2024

Welcome to your August 2024 Frisco real estate market update! After months of seeming to be stuck in neutral, we saw a significant change this past month as mortgage rates unexpectedly tumbled, thanks to weaker-than-expected economic news. But what does this mean for you if you're considering buying or selling a home in Frisco, Texas?

In this post, we'll break down the impact of these changing mortgage rates on the market, discuss the latest home price trends, and provide insights on what to expect for the rest of the year. Whether you're looking to buy, sell, or just stay informed, this update has something for you.

Watch the following video, or continue reading below, to learn more.


Mortgage Rates: A Game Changer for Buyers


Mortgage rates have been the dominant story in the real estate market. For the first time in a long while, rates took a significant tumble, dropping from 7.52% in mid-April to 6.4% recently. This decline has created a window of opportunity for buyers, as lower rates directly impact affordability.

For example, if you're looking at a $500,000 loan, the recent drop in rates could save you $375 a month on your mortgage payment. That's a substantial difference that can make homeownership more accessible.


Thinking of buying? With rates down and sellers more willing to negotiate, now might be the perfect time to strike. Don’t wait until more buyers return to the market, driving prices back up. Contact us today to discuss your options.


Home Prices: Stability with a Hint of Growth


Despite predictions that higher mortgage rates and decreased demand would cause home prices to decline, home prices nationally, and here in Frisco have remained resilient. Supply continues to be the key factor here. While inventory has increased, it's not enough to cause a significant oversupply, which means prices have remained stable.



Recent forecasts indicate that home prices are expected to continue appreciating through the rest of 2024 and into 2025, albeit at a slower pace than in recent years. This moderation in price growth suggests a more sustainable market, without the wild fluctuations we've seen in the past.

Here are the latest forecasts on home price appreciation for the remainder of 2024 and 2025:

 

Considering selling? If you’re not in a rush, waiting until the busier spring season could be beneficial. However, if you need to move sooner, you can still take advantage of the current market conditions. Schedule a consultation to explore the best timing for your sale.

The Local Market: What’s Happening in Frisco?

Local markets can vary significantly, even within the same region. Here in Frisco, we’re seeing more homes on the market compared to recent years, but we still have fewer homes for sale than we had in the fall of 2019:

This is why, even though demand has fallen, we haven’t seen home prices fall in the Frisco area. One metric used to predict future home prices is the median list price trend.

The median list price here in Frisco has been relatively stable for the past several weeks. The slight downturn you see on the far right hand side of the chart isn’t a reflection of falling prices, but a normal seasonal pattern.

This is also confirmed by the fact the number of homes taking a price reduction before going under contract is also starting to moderate.

Steady median list prices, coupled with a declining number of price reductions, are a sign of future price stability.

Want to stay informed? Our weekly market reports provide up-to-date information on inventory, list prices, and more. Check out the Latest Report Here and sign up to get the latest data delivered directly to your inbox.

What Should You Do Next?

Whether you’re buying or selling, understanding the current market trends is crucial. If you’re a buyer, the combination of lower mortgage rates and more negotiable sellers creates a unique opportunity. For sellers, the market remains strong, but timing your sale for maximum benefit is key.

No matter what your situation, I’m here to help. Book a free 30-minute consultation to discuss your needs and get personalized advice on navigating the Frisco real estate market.

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