Is the housing market finally shifting? With mortgage rates falling and home prices stabilizing, many buyers and sellers are wondering—what’s next? Let’s dive into the latest trends in the national real estate market, what’s happening locally in Frisco, TX, and what all of this means for you if you’re considering buying or selling this year.

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Home Prices: Are They Rising or Holding Steady?

One of the biggest questions right now is whether home prices will keep rising, stabilize, or start to decline. According to Selma Hepp, Chief Economist at CoreLogic, home prices have mostly been moving sideways since late summer of 2024, and that trend may continue into early 2025.

The latest Case-Shiller data confirms this, showing that year-over-year price appreciation is still positive in most markets, but at a much slower pace than in previous years.

Not all markets are created equal, though. Even though appreciation has slowed, some markets continue to perform better than the national average.

The key takeaway? Home prices are growing at a more normal pace rather than the rapid spikes or dips we’ve seen in recent years.

What This Means for Buyers & Sellers:

✅ For Buyers: Prices are not falling dramatically, so waiting for a crash may not be the best strategy.
✅ For Sellers: Demand is steady, but pricing your home correctly remains critical to getting the best offer.

👉 Thinking of buying or selling? Let’s chat! Book a free consultation

Mortgage Rates: Falling for 6 Weeks—Will It Continue?

Mortgage rates have now declined for six straight weeks and are lower than they were at this time last year. This is big news for homebuyers, as lower rates increase affordability and purchasing power.

How This Impacts the Market:

🔹 More buyers are entering the market, taking advantage of better affordability.
🔹 Sellers may feel more confident listing, knowing buyers are actively searching.
🔹 The magic mortgage rate? A recent survey found that 54% of homeowners would sell if rates hit 5.5%—we’re not there yet, but lower rates could trigger more inventory.

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Frisco, TX Housing Market Update

Frisco Home Prices: Stable, Not Falling

Despite some national uncertainty, home prices in Frisco have remained relatively steady since late last summer. While price growth has slowed compared to the rapid appreciation of recent years, the local market remains strong due to continued buyer demand and limited inventory.

Buyers hoping for a significant price drop may be waiting for something that isn’t coming. The combination of strong local employment, continued migration into the area, and favorable mortgage rate trends suggests that Frisco home values will hold steady in the near future.

Frisco Housing Inventory: Is More Supply on the Way?

While inventory levels have inched up, the increase hasn’t been enough to significantly shift the balance of the market. Many homeowners are still locked into ultra-low mortgage rates, which has kept the number of homes for sale below historical averages.

However, with rates trending downward, some sellers who have been waiting on the sidelines may finally decide to list their homes. This could lead to a more balanced market later this year, but for now, Frisco remains a seller’s market in many price ranges.

Are Sellers Dropping Prices?

The number of homes taking a price reduction can be a good indicator of market strength. In Frisco, we’ve seen a moderate number of price reductions, which suggests that overpriced listings are adjusting, but well-priced homes are still selling quickly.

For sellers, this means pricing your home correctly is key—overpricing can lead to longer time on the market and necessary price cuts. For buyers, watching for price reductions on homes that have been sitting could present some negotiation opportunities.

👉 Want to see real-time housing market trends for your city? CLICK HERE to get your free market report

Should You Buy or Sell Right Now?

🔹 For Buyers: If mortgage rates continue to drop, expect more competition—buying sooner could mean avoiding bidding wars.
🔹 For Sellers: Inventory is still relatively low, so homes priced well and in good condition are selling quickly.

🎯 Let’s Talk About Your Real Estate Goals! Schedule a free consultation

Final Thoughts

The housing market remains stable but dynamic, with mortgage rates driving a lot of the buyer activity. Whether you’re looking to buy, sell, or just stay informed, understanding the latest trends is crucial.