Home Prices: What’s Happening?

The price of homes in Frisco has seen some interesting changes. When we compare the average price of homes sold this December to what it was at the same time last year, it’s a bit lower. But if we look at the price change from November, there’s been a slight increase. So, prices went down compared to last year but went up compared to November.

Fewer Homes Available, More People Wanting to Buy

In 2023, we’ve had fewer homes for sale in Frisco than we did last 2022. Even when we compare the number of homes for sale in December to November, there are even fewer. This means if you’re looking to buy a house, there might not be as many options as before, and the competition might be a bit tougher.

Selling Homes: A Quick Overview

When we talk about how many homes were sold, there’s a decrease in the number of homes sold in December compared to last year’s December. But, interestingly, more homes were sold in December than in November. So, while fewer homes were sold compared to 2022, more homes were sold compared to November last year.

How Long Are Homes Staying on the Market?

If you’re selling your home, it’s taking longer to find a buyer than last 2022. On average, homes are staying on the market for more days. This is also true when we compare it to just last November – homes are taking a bit longer to sell in December than they did in November.

Pending Home Sales: A Slower Trend

It’s important to note that “pending sales” are homes that are under contract and are pending to close. We are currently seeing a decrease in pending sales compared to 2022, and even from November to December. This suggests that the real estate market is not as busy as it used to be.

What Does the Market Look Like for Sellers and Buyers?

Despite these changes, Frisco is still a seller’s market. If you’re selling your home, you’re in a good position because there aren’t many homes for sale, and there are still people looking to buy. But it’s also important to be patient, as homes might take longer to sell.

For those looking to buy a home, the smaller number of homes available could make it a bit challenging to find the perfect place. But there’s a silver lining – the slight drop in prices compared to 2022 might work in your favor.

What’s the Big Picture?

Overall, the Frisco real estate market is seeing some shifts. The market is slower than it was in 2022, but it’s still active. For sellers, this means being patient and realistic with pricing. For buyers, it means being prepared for a bit of competition but also being aware of potential opportunities.

Keeping an eye on these market changes is crucial. Whether you’re planning to sell your home or looking to buy one, understanding the current market conditions can help you make better decisions.

Feel free to reach out if you have questions or need advice about buying or selling in Frisco. Let’s navigate the Frisco real estate journey together, making the most of the opportunities this market has to offer. Follow Mister Frisco for more expert guidance!

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Listings vs. Median Price Past & Present

Sometimes the best way to appreciate the present is by looking at the past. For example, before the late real estate boom of 2018, in January 2018, active listings were 49,395 with a median price of $212,000. Fast forward to January 2023, and we see active listings at 52,715 with a median price of $275,000. With all the ups and downs over five years, it’s exciting to see median home prices increase by nearly 30%.

Historic Months of Inventory vs. List Median Price

Remember in the previous chart; we showed how six months of inventory is a balanced market, under six months is a seller’s market, and over six months is a buyer’s market? Here we see how, before the boom after 2018 (Jan 2018), it was clearly a seller’s market with five months of inventory available and a median list price of $239,900. Jump ahead to January of 2023, and we see a sustained five months of inventory but a bump in the median list price to $299,00. That’s almost a 25% increase in the median list price over five years. Also, as expected, fewer months of inventory on the market command a higher list median price, as seen in February through May of 2022, where two months of inventory spiked prices into the $350,000 range.

Inventory on the Market vs. Close Median Price

Considering the natural balance between supply and demand, the lower the inventory, the higher the close median price. Consider January 2018, which had five months of inventory and a close median price of $215,000. As inventory declined through July 2018, you can see the close median price increase to $242,000 – a 12.6% increase. However, we don’t see a corresponding decrease to 2018 prices once inventory returns to a 5-months level. Instead, in January 2023, the last time there were five months of inventory available, the close median price was $279,000 – a retained increase of 29.7%. Other price pressures are at work, favoring the seller.

Historic Count of Active Listings vs. Days on the Market

If you’re looking for solace in real estate trends, compare the numbers from Jan 2018 to Jan 2023. In January 2018, there were around 50,000 listings on the market lasting about 35 days. Looking at January 2023, we see active listings approaching 60,000, staying closer to 45 days on the market. So looking at the five years between January 2018 and January 2023, you see an almost inverse relationship between the number of active listings and the number of days on the market. 

It’s clear that with short inventory, the days on the market are much lower in July 2021, with 37,642 homes in inventory spending eight days on the market vs. July 2018, 60,668, 21 days. Of course, the inventory is still shorter, but the market is unique.

Active Listings vs. Close Price To Original Price Ratio

In January 2018, there were 49,395 properties listed for sale, and transactions closed at an average of 97% of the original listing price. Fast forward to January 2022, when there were only 31,029 homes on the market, and transactions closed at 100% of the original listing price. This data suggests buyers are more likely to pay closer to the listing price as inventory becomes more scarce. 

Historic months of Inventory on the Market vs. Closed Median Price

Returning to January 2018, we see historic months of inventory hovering around a little over four-and-a-half months. Here, the corresponding closed median price rested around $275,000. You see a price drop when there’s a sudden gain in inventory. Jump to January 2023, and you will see the reverse happening. As inventory begins to dip from a near peak of just over five-and-a-quarter months of inventory at the end of 2022, prices similarly spike during the same period, finishing January of 2023 at $300,000. Remember, however, that the bump in price is because of the low inventory on the market during 2021-22.

Although factors like interest rates, lifestyle features, and commutability all play a part in a local real estate market, it is still difficult to escape the law of supply and demand. If people want something, they will find a way to get it. However, that doesn’t mean your search for a new home has to be challenging. Contact Mister Frisco, Viktor Taushanov, when you’re ready to find your dream home.

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