Welcome to our January 2025 Real Estate Market Update, where we dive into the latest trends shaping the national housing market and bring the focus back to what’s happening locally here in Frisco, TX. Whether you’re considering buying or selling a home, understanding the market is essential to making informed decisions.

For a detailed breakdown of the market, check out the video update below and keep reading for highlights.

National Trends: 2025 Home Price Forecasts

Home prices in 2025 are expected to remain relatively stable, with expert predictions ranging from slight appreciation to modest declines. Here’s what major institutions are currently forecasting:

The consensus? The housing market is normalizing after the highs and lows of recent years. No dramatic price swings are expected, making 2025 a year of steadier growth.

Mortgage Rates: A Historical and Future Look

Mortgage rates continue to play a pivotal role in housing affordability. While rates today are hover around 6.91%, a look back at historical rates provides valuable context:

Looking forward, experts predict rates will stabilize between 6% and 6.5% in 2025:

Frisco Market Trends: A Closer Look

Let’s shift the focus to the Frisco real estate market, where local conditions paint a nuanced picture for buyers and sellers.

Median Home Price Trends

Frisco home prices remained relatively flat throughout 2024 but have started showing slight upward movement as we head into 2025. Here’s the chart detailing the median home price trend:

Key Insight for Sellers: Home prices are holding steady, but proper pricing and preparation remain crucial as the market becomes more competitive.

Key Insight for Buyers: Slight price increases suggest now is a great time to act before further growth occurs.

Housing Inventory in Frisco

One of the most significant changes in the local market has been the rise in housing inventory. Here's a closer look at the trend:

For Buyers: Increased inventory means more options and potentially better negotiating power.

For Sellers: With inventory growing, standing out in the market requires a strategic approach to pricing and presentation.

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What This Means for You in 2025

For Buyers:
Act sooner rather than later. Stabilized mortgage rates and growing inventory make this a prime opportunity to negotiate favorable terms. Don’t forget to explore builder incentives and quick move-in home deals for added savings.

For Sellers:
Competition is increasing. To achieve the best results, focus on proper pricing, staging, and marketing. Homes that are well-prepared and strategically positioned are still selling quickly.