The 2022 Collin County Real Estate Market in 6 Simple Points
A no fluff summary of the most important things you need to understand about the Collin County Texas Real Estate Market.
The market is bananas!…..
….At least that’s what we keep hearing. But what does that actually mean?
The issue with blanket statements like this is that it doesn’t clearly paint the picture for what is happening in the North Texas real estate market. As a home seller or buyer, you don’t need fluff – you just need to know what it’s actually like out there!
I’m a huge believer that an educated individual becomes a successful seller or buyer. For that reason, I wanted to share a straight to the point, no fluff summary of the real estate market in Collin County Texas and surrounding areas.
Below, I have listed out 6 key points that you need to know about the market. Ready to dive in?
POINT 1
There are a ton of buyers out there
Seriously – there are a lot of buyers out there. But why? Here are a few contributing factors.
- Millennials are in their primary age of buying a home
- With the pandemic, people were spending more time at home and realizing that their current living situation could be improved
- Mortgage interest rates dropped to ridiculously low levels (although those are now rising slightly)
- Individuals accrued more cash than ever before over the past few years with stimulus funds and reduced spending playing a huge factor in that.
- People were on the move – remote work allowed individuals to move to places they wanted to
POINT 2
There aren’t many houses for sale
New listings have been hard to come by. To illustrate, take a look at the number of new listings in 2019 compared to 2020 and 2021 in Frisco, Texas.
Why have new listings declined? A few factors..
- Homeowners were cautious of selling their homes during a pandemic
- Individuals didn’t want to risk selling and not having another home lined up since the market is so competitive
POINT 3
The ratio of buyers to sellers is just way off
The best way to understand just how out of balance things are is to look at the market’s Months of Supply statistic. This stat shows us how long it would take for our market to “sell out” of inventory if no new listings were to go on the market.
Rewind back to 2019, the average Months of Supply in Frisco, Texas was 3.9 – a fairly healthy number. Fast forward to 2021 and our average was .8 meaning inventory wouldn’t even last a full month! And it has gotten worse! In December of 2021, the Months of Supply dropped down to .3.
POINT 4
Multiple offers are the norm
Multiple offers have become the reality which is GREAT for sellers, but not so great for buyers. As an example, an article published by millionacres.com stated that 70% of buyers faced a bidding war in May 2021.
POINT 5
Record-breaking home values
The value of homes just keep… on… rising… To illustrate, you can see that the average sales price of a home in Frisco went OFF THE CHARTS in 2021 growing nearly 30% from 2020.
POINT 6
Homes sell FAST
Because the market is so incredibly competitive, people are moving quick and sellers don’t have to keep their homes on the market very long to command record-breaking prices. The median days on market fell almost 80% from 23 days in 2020 to a mere 5 days in 2021.
So what does all of this mean?
So is the market as “crazy” as people say? Sure. But there are two vastly different takeaways depending on if you are a buyer or a seller.
Are you a seller?
Selling your home in 2022 will allow you to take advantage of one of the best sellers markets that has ever existed. This means more money, more favorable terms, and a faster sale! This also means that you will have a lot of things to consider such as accepting the right offer (not just the highest) and making sure you are positioned to become a successful buyer yourself after your home sells.
Are you a buyer?
Just because it is a competitive time to buy a home doesn’t mean it’s a bad time to buy. Buying a home is still a fantastic long term investment SO LONG AS YOU BUY IT AT THE RIGHT PRICE. That is why it’s so important (especially in this market) to have a Realtor advise you on the value of the home you are making an offer on.
What do you think of this market? Do you see the opportunity within it? Or does it make you want to avoid it at all costs? Let me know what you think by commenting below.