September 2024 Frisco TX Real Estate Market Update: Is the Market Finally Turning?

The real estate market has been in a bit of a slump lately, with home sales down from their highs in recent years. But with mortgage rates finally starting to drop, there’s hope that the market could be on the verge of a turnaround.

In this month’s market update, I’ll be diving into what’s really going on in the Frisco market and what it means for you—whether you're looking to buy or sell a home. I’ll cover key trends in inventory, pricing, and mortgage rates, and share some of the best deals available in today’s market.

Sales Slump, Prices Stay High: What’s Going On?

Even though total home sales have dropped significantly—from 6 million in 2021 to around 4 million in 2023—home prices haven’t followed suit. You might be wondering why. The simple answer comes down to basic economics: supply and demand.

While buyer demand has slowed, the inventory of homes for sale has remained historically low. This imbalance keeps prices high, even in what might otherwise feel like a recession for the real estate market. So despite fewer homes being sold, prices are holding steady.

A key concept to understand here is the difference between a buyer's market and a seller's market. For the past decade, we’ve been in a seller's market, with less than five months' worth of housing inventory. In a balanced market, we’d have five to seven months of inventory, and in a buyer's market, we’d see more than seven months.

Currently, Frisco is sitting at around four months of inventory, the highest we’ve seen since 2019, but still not enough to tip the scales in favor of buyers.

Mortgage Rates and the Fed: What You Need to Know

The good news for both buyers and sellers is that mortgage rates have finally started to come down. The Federal Reserve is expected to begin a series of interest rate cuts this month, which should help bring mortgage rates down even further.

But don’t expect a drastic drop in home prices just yet. As inventory remains low, prices are likely to stay elevated, though we are seeing more gradual seasonal price adjustments. This makes it a great time to keep an eye on the market, especially if you're considering buying in the near future.

Inventory and Price Trends: The Latest Data

Let’s take a closer look at the inventory and pricing trends. While we’ve seen more homes coming on the market, inventory peaked earlier this summer and has been slowly declining since August. That trend isn’t likely to push prices down significantly beyond the normal seasonal adjustments we see each fall.

Additionally, we’re seeing a decrease in price reductions, meaning sellers aren’t having to discount their homes as much to make a sale. This further supports the idea that we won’t see large price drops in the coming months.

If you’d like to see all of the market trend data for Frisco, Click Here to see the complete Frisco Market Report.

Interested in an area other than Frisco? Not a problem! From the Frisco Market Report simply use the search box at the top to look up any city or zip code in the country.

Should you Wait to Buy or Sell a Home?

Only you can make the decision that’s best for you and your family. Truth is, you’ll never know of the market has peaked, or reached bottom, until after it has.

As Jacob Channel, Senior Economist at Lending Tree, puts it:

If you have questions and need help determining if now is a good time for you to consider buying or selling a home, then I invite you to Schedule a Call with me. There is never a cost, or obligation, and I’d be happy to share additional insights to help you make the best decision for you and your family.

The Best Deals Right Now: Quick Move-In New Construction Homes

If you’re looking for the best deals in today’s market, quick move-in new construction homes offer some of the best opportunities. These homes, which are ready for immediate move-in, are often discounted by builders looking to clear inventory before the end of the year. Some homes in Frisco have seen price reductions as high as $400,000!

Pro Tip: If you’re in the market for a new home, consider these quick move-in options to take advantage of significant savings.

Final Thoughts: What’s Next for the Market?

So where does the market go from here? While the exact future is uncertain, a few things are clear:

Mortgage rates are expected to continue falling.
Buyer demand will likely increase as rates drop.
Inventory is still too low to cause a significant decline in home prices.

For more detailed insights, check out my full September 2024 Frisco TX Real Estate Market Update video below, where I dive deeper into these trends and provide an in-depth look at what’s happening locally in Frisco.

If you have any questions about the market or you're ready to start exploring your buying or selling options, feel free to reach out. I’m always happy to help guide you through the process.