Inflated home prices (Plano, Coppell, Frisco: transplants, new home, employment)

[camom_ptn]

Looking for home in Frisco, the prices have increased around 200K in the last 1 year.What contributed to the higher prices, are we heading towards a slow down/drop in 2022?

[Johnhw222]

Deman out paced supply. Also,supply cost have seen inflated prices. Low interest rates made these prices affordable by more than the supply could accommodate. Only interest rates of this list is likely to dampen demand. Frisch is getting new employment options with pga jobs moving there from Fla. don’t count on prices dropping near term. Longer term is cloudy on the national front. But my bey I’d Texas and frisco continue to grow fueling demand for additional housing supporting prices.

[ChristieP]

Refugees from high tax states (California, Oregon, New York, New Jersey) moving to Texas to escape.
Corporate relocations ringing thousands of people at the same time (Charles Schwab, Toyota, etc.)
Organic growth here in DFW

Prices are not likely to go down. Hopefully the crazy demand, and bidding wars over every house, will slow down.

[LocalPlanner]

Originally Posted by ChristieP

Refugees from high tax states (California, Oregon, New York, New Jersey) moving to Texas to escape.
Corporate relocations ringing thousands of people at the same time (Charles Schwab, Toyota, etc.)
Organic growth here in DFW

Prices are not likely to go down. Hopefully the crazy demand, and bidding wars over every house, will slow down.

Exactly, the crazy frenzy, and hopefully the super-rapid appreciation, will decrease - for the health of DFW, it really needs to. It's hard to imagine actual prices falling when they're bolstered by the fundamentals you list (I'd add the general impact of the millennial generation - those that are white-collar and married/partnered to other white collar workers, now looking for their first or second home, earning good salaries can support the prices).

[Wittgenstein's Ghost]

Be skeptical of anyone who thinks they know what will happen to home prices.

[Leonard123]

Why do you need to be in Frisco? You can easily pay $100K-$200K less just hopping across the boundary line east or west. Too many people pay a premium for a zip code.

Obviously, not every house, even in Frisco, has gone up $200K. Similarly, not every neighborhood or city has gone up in price so much. It varies considerably.

[TurtleCreek80]

Originally Posted by camom_ptn

Looking for home in Frisco, the prices have increased around 200K in the last 1 year.What contributed to the higher prices, are we heading towards a slow down/drop in 2022?

Things that contributed to price increases:
-Covid rapidly accelerated WFH / remote work opportunities leading to a huge influx of transplants from high tax states

-DFW is one of metros with the largest variance between new home demand & supply in the entire country

-all of the supply issues are impacting new home builds here, too - inability to meet labor demand, raw materials price increases, etc. And then throw the fact that the region is 1) already behind in meeting new construction demand and 2) the February winter storm damaged tens of thousands of homes in some way, from burst pipes to pool leaks to destroyed landscaping. Someone on here recently posted that their Frisco home has water damage from the storm and they are STILL waiting on drywall people….

-influx of HQ relos to the Plano/Frisco area specifically

-tailwinds due to ongoing high profile developments like PGA, UNT Frisco campus, etc.

-plus macro issues like continued low interest rates & high inflation


Now, no one has a crystal ball as to the future but I would say barring any major global macroeconomic calamities, Frisco prices will continue to be on the upper end of the price increase range for DFW.

[Capitalprophets]

Originally Posted by TurtleCreek80

Things that contributed to price increases:
-Covid rapidly accelerated WFH / remote work opportunities leading to a huge influx of transplants from high tax states

-DFW is one of metros with the largest variance between new home demand & supply in the entire country

-all of the supply issues are impacting new home builds here, too - inability to meet labor demand, raw materials price increases, etc. And then throw the fact that the region is 1) already behind in meeting new construction demand and 2) the February winter storm damaged tens of thousands of homes in some way, from burst pipes to pool leaks to destroyed landscaping. Someone on here recently posted that their Frisco home has water damage from the storm and they are STILL waiting on drywall people….

-influx of HQ relos to the Plano/Frisco area specifically

-tailwinds due to ongoing high profile developments like PGA, UNT Frisco campus, etc.

-plus macro issues like continued low interest rates & high inflation


Now, no one has a crystal ball as to the future but I would say barring any major global macroeconomic calamities, Frisco prices will continue to be on the upper end of the price increase range for DFW.

I remember once people were saying Prosper is too far north and no one wants to move out there. Now its like too far from what? Everyone works from home. Texas has too much land for property values to be going high up. Then same people said PGA will only bring the housing market down in those areas. Its like the common opinion is always usually wrong on these posts.

[camom_ptn]

Originally Posted by Leonard123

Why do you need to be in Frisco? You can easily pay $100K-$200K less just hopping across the boundary line east or west. Too many people pay a premium for a zip code.

Obviously, not every house, even in Frisco, has gone up $200K. Similarly, not every neighborhood or city has gone up in price so much. It varies considerably.

I have 2 kids in middle school, I was looking for good schools.Heard Frisco, Plano, Coppell have good schools. Coppell seems to have very low inventory
Looking at Frisco and Plano. Frisco being a newer community, i was inclined towards it.

[tcualum]

Plano has excellent schools. Check out Plano.