If you've been thinking about buying or selling a home in Frisco, TX, 2025 presents a unique set of market conditions that could impact your decision. Predictions regarding mortgage rates, home prices, and inventory levels have shifted, and the strategies that worked last year may no longer be your best move.

In this post, we’ll break down exactly what’s happening in the Frisco real estate market right now and what it means for you as a buyer or seller.

📺 Watch the full market update video here:

Frisco Home Prices: What’s Trending?

The median list price in Frisco remains relatively stable compared to last year. According to recent data:

February 2024: The 90-day average list price was $743,000
February 2025: The 90-day average list price is $752,000

That’s just over a 1% change, which suggests that while home prices aren't declining, they also aren’t rising rapidly.

🏡 Key Takeaway: Prices are holding steady, and with more inventory available, buyers have more options than they did a year ago.

Housing Inventory & Market Supply

More homes are available in Frisco now than a year ago, but the market isn’t flooded with inventory.

February 2024: 276 homes for sale
February 2025: 488 homes for sale

While this is a significant increase in supply, it's still below pre-pandemic levels, meaning the market remains competitive but balanced.

🏡 What this means for buyers & sellers:

For buyers: More options = more negotiating power
For sellers: Pricing your home correctly is critical since buyers have choices

Mortgage Rates: Where Are They Headed?

A major factor influencing buyer demand is mortgage rates. Just a few months ago, experts predicted rates could drop into the 5% range by late 2025. That’s no longer the case.

🔹 Latest Forecast: Mortgage rates are expected to remain between 6% and 6.5% for the next two years.

The latest mortgage rate projections from Fannie Mae, MBA, and Wells Fargo show:

🏡 What this means for buyers:

If you’re waiting for rates to drop below 6%, it’s unlikely to happen soon.
As soon as rates dip even slightly, more buyers will jump back into the market, increasing competition and potentially driving prices up.
Builder incentives are a great alternative—some builders, like Highland and Shaddock Homes, are offering 5.49% fixed rates for 30 years.

🏡 What this means for sellers:

The mortgage rate lock-in effect is real—many homeowners hesitate to sell if they have a 3% interest rate on their current home.
If rates drop later in the year, more homes will hit the market, increasing competition among sellers.
Pricing and preparing your home correctly are essential for attracting buyers.

Should You Buy or Sell in 2025?

The best move depends on your situation.

🔹 For Buyers:

If you find a home you love, waiting could cost you more in the long run.
Mortgage rates can be refinanced later, but home prices are unlikely to drop significantly.
Builders are offering fantastic incentives—take advantage of them while they last.

🔹 For Sellers:

If you're thinking about selling, strategic timing is key.
More inventory could hit the market later in 2025, increasing competition.
Homes priced correctly and in great condition will sell the fastest.

📞 Need expert guidance? Let's discuss your situation and create a strategy that works best for you.

📅 Schedule a free consultation

Final Thoughts

2025 is shaping up to be a steady but changing market. While mortgage rates remain elevated, home prices in Frisco are holding strong. Whether you're looking to buy or sell, having the right strategy is critical.

Have questions about the Frisco real estate market? Drop a comment below or Schedule Your Free Consultation.