With so many people deciding to relocate to this incredibly thriving suburb of Dallas, Texas, knowing a few things about the Frisco real estate market ahead of time is essential. Now, we don’t mean to scare you, but the Frisco real estate market is not for the faint of heart. Things move fast in a market that’s been booming for such a long time, and this is a city where making fast decisions for the best interest of your family is a must. When you take a look at real estate trends across the country, you’ll probably notice that throughout every economic struggle, the general direction is appreciation. Even after a prolonged period of economic turmoil and insecurity, prices start climbing as soon as the uncertainty is washed away. In some cases, like the Frisco, Texas, real estate market, the dip is limited, and the growth following it is, often, accelerated. There is no simple path towards homeownership, but Frisco’s residents will need to understand their situation. By contacting some of the best real estate agents in Frisco TX you will find your own home in this fantastic city as they know the in’s and out’s of the city’s housing market. They’ll surely tell you to get your financial paperwork pre-approved ahead of time, get ready to make fast decisions, and be as flexible as possible. Frisco’s Housing Market Influencers If you want to understand why Frisco's real estate market is so competitive, all you have to do is check out the quality of life in the city of Frisco, TX. This city has many things going for it, from the growing job market to the education system, finding something that is not working here is difficult. Buying a property in Frisco is a real struggle but not for the reasons you might expect. Just so you get an idea of how real it is, some houses listed for sale have around 90 offers … each. Population Growth When you look at cities like Frisco, Texas, you’re bound to be amazed by what’s happening. Simply looking at the insane population growth that the city of Frisco, TX, has experienced over the last two decades will give you an idea. And yes, when we say two decades, we mean two decades. Before the year 2000, the city’s growth was starting to show a tender increase. When you understand that we’re referring to growth from 6,100 to 33,700, you’ll think the use of the word “tender” is wrong. Just take a look at what has happened since then. Between 2000 and 2021, Frisco’s population grew from 33,700 to 227,600. And yes, that happened over two decades. This can be seen as one influencer of Frisco’s real estate market. Economic Growth Another factor that affects Frisco’s real estate market is the city’s economy. All those people came to Frisco because they saw the opportunities available. Not only is Frisco the best of Dallas’s suburbs, but it has a thriving economy of its own. Just look at statistics that compare Frisco’s economy to that of Dallas or Texas as a whole. You’ll be surprised at the median income in Dallas’ suburb, especially when compared to the city it is a suburb too. The median household income in Dallas, TX is around $52,000, while in Frisco, TX, despite the city being Dallas’s suburb, the median household income is $127,000. Unemployment rates are also lower than Dallas’s, and this is only the second influencer for Frisco’s housing market. Educational Strategy The last influencer that affects Frisco’s housing market regardless of economic trends in the city’s incredible education system. Regarding the public school system, Frisco’s education is managed by the Frisco Independent School District as well as the Lewisville Independent School District, Little Elm Independent School District, and Prosper Independent School District. However, the large majority is under the supervision of Frisco ISD, consisting of 10 high schools, 17 middle schools, and 42 elementary schools. This incredibly well-developed school district leads to focused and strategic education that results in exceptional performances from the youngest citizens of Frisco. With over 60% of Frisco’s population having 4-year college diplomas, 18% having a master’s degree, and almost 5% having even higher education, the city invests firstly in the youngest of its residents. These children turn into highly productive individuals among the community that can easily find employment in Frisco’s growing job market. It seems like Frisco has got it all covered. The Pandemic Finally, we have to mention the pandemic and see how it affected Frisco’s real estate market. Amid the COVID pandemic, people started to worry about the economic effects and how the housing market will suffer. While there have been areas and sectors hit by these waves and are still struggling to get back on track, Frisco pushed through. The year 2020 saw a dip in the real estate market, but that dip wasn’t big enough to impact the long run. From the median home value of $424,000 experienced before the pandemic, the year 2020 only saw a drop to $419,000, this being the lowest median home value experienced. By July of 2020, the real estate market was back on its feet, and another thing happened. It might have come as an effect of social distancing with people wanting to move out of major population centers, but demand grew, and prices followed. Currently, the median home value in Frisco is at $426,000, and the trends show the accelerated growth will continue. Crash, Bubble, Boom, or What to Expect Social media sites are filled with countless content, from blog articles to youtube videos about real estate trends bound to level out the playing field, and, yes, this is another article like that, we must learn what to take for granted and what not to. Everyone, especially those interested in purchasing properties in cities like Frisco, Texas, are looking forward to a housing market crash, one that would follow the pattern of the last economic crisis. We all need to understand that might not be the case this time around. Worst-case scenario: Everything that follows this statement will be wrong, and a crash will occur, and you’ll manage to buy a property at a very affordable price. If that happens, you’ll be happy, and I’ll be wrong. However, when we talk about a housing market crash, we have to understand what that means. It means a lot of foreclosures, a lot of evictions, a lot of people left without an income, and neither of those should be things to be looking forward to. Real Estate Forecasts for Frisco, TX Now, getting back to the whole housing crash, bubble, boom, burst conundrum. I say it won’t happen because the current increase in prices in cities like Frisco is not based on low-interest rates that make it so that anybody can buy a house. The only reason the Frisco real estate market is appreciating at such a high rate is because there is an insane amount of demand. When there’s a high demand for a limited inventory of houses, prices increase because of bidding wars. These bidding wars result in houses getting 90 offers before selling and reaching a selling price that is far above the initial asking price. A competitive housing market like Frisco’s will experience pricing growth. Some people might be led to believe that what goes up will surely go down. For these people, content that promotes the idea of a housing crash is comforting as buying a home is difficult in a competitive market like Frisco’s. It makes them wait for the crash, but what if the crash doesn’t come? Like this, potential buyers end up postponing their milestones and waiting in vain. Understanding the Meaning of Value in a Real Estate Market The second thing that I want to mention is the terminology “above value” or “above asking price”. This deals with the selling price of a property. When we talk about listing price, we refer to the seller’s idea of value. Generally speaking, the offer that’s accepted is what the seller and the buyer have agreed upon as the fair price for that property, what the seller and buyer are comfortable with receiving and giving. During the appraisal process, the appraised value is the appraiser’s idea of just value for the house.
However, all of these are only opinions, and the only thing that matters is the price the buyer is comfortable with paying for the property. That is the true value of the property. In a situation that involves a lender, if the buyer determines that he/she is willing to pay $500,000 for a home that is appraised at $450,000, that means that the lender will give them a percentage from $450,000, and they’ll have to cover the remaining $50,000 in their downpayment. The real estate market is volatile, influenced as exemplified above by many factors. Looking back at the 2008-2009 housing market crash, we can see one big difference. Since then, the Consumer Financial Protection Bureau was created, in mid-2011, to protect borrowers from foreclosures and any other effects resulting from the inability to meet their mortgage payments. This was implemented by increasing the screening process and fairly enforcing rules that the lender must adhere to. This organization doesn’t completely dismantle foreclosures, but it does make it more difficult for a borrower to get to that point. The CFPB leveled the playing field and made it so that a real estate market crash can not happen on the same basis as the 2008-2009 crash. Conclusion We can see how a city’s sustainable growth spreads its influence during a quick overview of the real estate market in Frisco, TX. Being the most desirable Dallas suburb, the city of Frisco attracts people from all over the country, and those who move there don’t wind up regretting it. The natural result is that people from California, New York, and Illinois are outbidding each other to try and get their hands on a Frisco home. The city of Frisco continues to grow and those living there enjoy every second of it because that growth can be seen in the city’s quality of life. Make sure to Like and Share this article as many people might be looking at Dallas’s suburbs. We highly recommend getting your information from multiple sources, especially when it comes to real estate trends, and make an informed decision as best as you can.
0 Comments
|
Theresa Hus
Theresa Hus is a member of the content team at The OFFICIAL Real Estate Agent Directory®, producing countless informative and trendy real estate articles for RealEstateAgent.com and its many outlets. Archives
April 2024
Categories |