Frisco, TX Real Estate Market: Historical Trends and Future Predictions

As one of the fastest-growing cities in the country, Frisco boasts a thriving economy, attracting families and businesses. The city has several corporate headquarters, making it a hub for professional opportunities and economic stability. Family-oriented neighborhoods have top-rated schools providing a strong educational foundation for the next generation. Whether enjoying a day at the local parks, exploring the vibrant dining scene, or attending a performance at one of the city's many cultural centers, Frisco offers an enriching lifestyle. These factors have created a robust real estate market, where homes are in high demand, and property values continue to rise.

As of July 2024, the Frisco housing market reflects the city's strong growth and desirability. The median sold price for homes in Frisco reached $686,391, equating to $246 per square foot. It is a 1.7% increase compared to the previous year, demonstrating a steady appreciation in property values. 

The upward trend is particularly notable when compared to broader market figures. For instance, the U.S. median home price was $420,800 in the first quarter of 2024, while the median home price across Texas was $336,400 during the same period. Frisco's higher-than-average home prices underscore the city's appeal as a premium location within the state, driven by its strong economic base, quality of life, and the ongoing demand for housing.

Frisco's surrounding areas also boast dynamic real estate markets with unique characteristics and trends. Just to the north, Prosper remains a hotspot for luxury living, with a median sold price of $850,000 in July 2024. It is a 6.3% increase from the previous year, highlighting Prosper's appeal among buyers seeking upscale homes. There are 461 homes for sale in Prosper, with properties typically spending an average of 63 days on the market before being sold. The quick turnover indicates a strong demand for homes in this affluent community.

The Pilot Point-Aubrey area offers a more affordable alternative with a median sold price of $456,815 in July 2024. The market here has seen a slight increase of 0.3% from last year, reflecting steady, if modest, growth. With 1,663 homes currently on the market and an average time on the market of 71 days, Pilot Point-Aubrey provides a range of options for buyers looking for more space or a quieter lifestyle while still within reach of Frisco's amenities.

McKinney, a rapidly growing city southeast of Frisco, reported a median sold price of $529,845 in July 2024, marking a 0.9% increase since last year. With 1,299 homes listed and an average market time of 60 days, McKinney offers a balanced market where homes are priced competitively and tend to move quickly. It is an attractive option for those seeking a blend of suburban charm and urban convenience, just a short drive from Frisco's bustling core.

The housing supply in Frisco is showing signs of tightening, with the number of homes for sale and the average time on the market indicating increased buyer activity. In June 2024, were 1,005 homes available for sale in the city. By July 2024, this number had risen slightly to 1,097 homes on the market, suggesting a healthy inventory level to meet the demand. However, what truly stands out is the significant reduction in the average time homes spend on the market.

In July 2023, homes in Frisco typically took an average of 99 days to sell. Fast forward to July 2024, and that average has dropped dramatically to just 60 days. The swift decrease in market time reflects a competitive environment where buyers act quickly to secure properties, likely due to the city's continued growth and desirability. It highlights the high demand for homes in Frisco and suggests that the market may be tilting toward sellers.

For those considering selling their property, this trend indicates a prime opportunity to enter the market, as the quicker turnaround times could lead to favorable conditions for achieving strong sales prices. Meanwhile, buyers should be prepared to move swiftly and decisively in this increasingly competitive landscape.

The current rental landscape presents opportunities and considerations for those looking to invest in Frisco's real estate market as landlords. As of 2024, the average rent for a two-bedroom home in Frisco was $2,238, reflecting a slight decrease of 3% from last year. The modest dip may suggest a temporary softening in rental demand. Still, it also allows investors to attract tenants with competitive pricing, particularly in a market where nearly one-third (32.8%) of homes are rentals.

In neighboring McKinney, the rental market shows a similar trend, with the average rent for a two-bedroom home at $1,999, down 3% from the previous year. It indicates a potential opportunity for investors to tap into a slightly more affordable market while benefiting from proximity to Frisco's amenities and economic growth.

On the other end of the spectrum, Stonebriar, one of Frisco's more upscale neighborhoods, offers a different picture. Here, the average rent for a two-bedroom home is a substantial $5,924, reflecting a 2% increase over the past year. The rise in rent underscores Stonebriar's appeal as a premium location for high-end tenants, making it an attractive option for investors looking to maximize rental income in a luxury market.

Overall, Frisco's diverse rental landscape offers investors a range of opportunities, from more affordable options in nearby areas to the potential for higher returns in luxury neighborhoods like Stonebriar. With rental properties making up a significant portion of the housing market, Frisco remains a promising location for those looking to build or expand their real estate investment portfolio.

For potential real estate investors in Frisco, the current market conditions suggest a favorable environment to move. One of the most significant factors driving this positive outlook is the recent drop in mortgage rates. According to Freddie Mac, rates have decreased by a full percentage point, with the possibility of trending down further into the 6% range. Lower mortgage rates can significantly reduce borrowing costs, making it more affordable for investors to finance new property purchases and improve cash flow potential.

In addition to more accessible financing, the long-term trend of home value appreciation adds another layer of confidence for investors. When examining national trends, home values have consistently risen since 1965, demonstrating real estate's resilience and growth potential as an asset class. The historical trend suggests that even amid short-term fluctuations, the value of property investments tends to increase over time, providing stability and opportunity for wealth building.

In Frisco, a city already known for its rapid growth and strong demand, these factors combine to create an environment where buyers and sellers can benefit. Sellers might find that the market remains competitive with rising home values, while buyers — especially investors — can take advantage of lower financing costs and the likelihood of continued appreciation. Overall, the current market conditions in Frisco present a compelling case for those considering entering the real estate market or expanding their investment portfolio.

As a native Texan and a seasoned professional ranked in the top 1% of real estate agents, Rene Burchell keenly understands the unique dynamics that influence property values in Frisco. Whether buying or selling, her expertise ensures you get the most value out of your investment. In a rapidly changing market, having a trusted advisor who knows the area inside and out is essential for making informed decisions and achieving your real estate goals.