Is 2025 the Year the Market Turns Around?

Home sales in 2024 were lower than at any time in the past 50 years. Now, as 2025 begins, the big question is: will this year bring a turnaround, or are we in for more of the same?

In this update, I’ll break down the latest market trends—both nationally and locally—and what they mean for buyers and sellers in Frisco, Texas. If you're considering making a move this year, this is the information you need to know.

Watch the full market update video here:

A Record Number of Buyers Plan to Purchase in 2025

One of the most interesting trends we're seeing is a significant increase in buyer demand. According to a recent NerdWallet survey, a record 15% of Americans plan to buy a home in the next 12 months—higher than any time in the past six years.

This signals that many of the buyers who have been waiting for mortgage rates to drop are now realizing that life events—marriage, growing families, relocations—don’t always align perfectly with market conditions. Many are choosing to move forward despite rates remaining higher than they’d like.

Thinking about buying a home this year? Get my weekly market insights and stay informed. Subscribe here.

Home Prices Have Been Rising—Will That Continue?

A common concern among buyers is: What if home prices drop? But history tells a different story. Looking at national home price appreciation over the past five years, values have increased significantly.

Home Price Appreciation (2019–2024)

  • Nationwide: +57.4%

  • California: +46.7%

  • Texas: +50.7%

If you had bought a home five years ago, would you have done it? Most people say yes—and this long-term perspective is key when considering a home purchase today.

Curious about what your home is worth today? Get an instant home valuation here.

30+ Year Home Price Appreciation (1991–2024)

While there are fluctuations, real estate continues to be one of the strongest long-term investments.

The Best Time to Buy? Seasonal Trends Say Now

Looking at seasonal price trends, January through March is historically when home prices are at their lowest.

National Home Price Seasonality

Prices tend to peak in June before gradually declining toward the end of the year. This means that if you're looking for the best price on a home, early in the year is typically the best time to buy.

Let’s discuss if now is the right time for you. Schedule a free consultation here.

Frisco Market Trends: What’s Happening Locally?

Now, let’s take a closer look at what’s happening specifically in Frisco.

Median Home Prices in Frisco

As expected, prices hit their lowest point in early January and have now started to trend back up. While we’re not seeing the rapid price increases of previous years, home values in Frisco remain stable, with experts projecting modest appreciation in 2025.

Inventory Levels in Frisco

Housing supply remains tight, and while more sellers are entering the market, inventory is still well below historic averages. For buyers, this means you won’t see a flood of new listings that could drive prices down.

Price Reductions in Frisco

One key indicator of future price changes is the number of homes reducing their asking price before selling. Currently, Frisco is not seeing a significant increase in price reductions, suggesting that home values remain stable.

Selling this year? See how much your home could sell for with a free home valuation. Get your report here.

Builder Incentives: Lower Mortgage Rates Instead of Price Cuts

One of the best opportunities in today’s market is new construction homes. Instead of dropping prices, many builders are offering aggressive financing incentives.

For example, Highland Homes is currently offering:

  • 4.49% interest rate for the first year

  • 5.49% fixed rate for years 2–30

This is significant because a 1% drop in interest rate equates to a 10% price reduction in terms of monthly affordability.

Want to know which builders are offering the best incentives? Let’s chat! Schedule a call.

What This Means for Buyers and Sellers in 2025

For Buyers:

  • Prices are at their lowest point of the year—waiting may mean paying more in the coming months.

  • New construction deals are offering lower mortgage rates, which can significantly improve affordability.

  • Long-term appreciation remains strong, making homeownership a great investment.

For Sellers:

  • The best time to list your home is March to early April, when buyer demand surges.

  • Home values remain stable, and buyers are returning to the market.

  • Strategic pricing and presentation will be key in attracting the right buyers.

Buying or selling? Let's discuss your next steps. Schedule a consultation.

Watch the Full Market Update

For a more detailed breakdown, watch the full February 2025 Frisco Real Estate Market Update below:

Frisco Homes For Sale


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