New Jobs Bring Families and Higher Prices to Frisco: Is It Finally Time To Sell?
New jobs make Frisco epicenter of economic boom. How will this influx of new employees effect an already-competitive listing inventory?
Image Source: Dallas Business Journal
Texas is the land of big, from hats to hair, but when it comes to a robust economy, it’s the up-and-coming smaller cities, like Frisco, that rule the day.
Businesses are focusing here, making Frisco the economic epicenter of the region. Along a one-mile stretch of the North Dallas Tollway, $5 billion of development, dubbed “The $5 Billion Mile,” is slated to be built in the next few years anchored by the new world headquarters and training facility of the Dallas Cowboys. This new hub of business will bring thousands of new jobs to the area. The groundbreaking of Toyota’s New North American Headquarters just south of Highway 121 in Plano promises another 4,000 new jobs.
Will the combination of low housing inventory (about one-third of the amount considered to be theoretical equilibrium), average leases at $2,149, and more buyers than sellers finally entice existing home owners to sell? It likely will, and here’s why.
1. Home Values Are Truly Increasing
According to the Dallas Morning News, home prices in North Texas are 12 percent higher in January than this time last year. This is likely to continue, even when interest rates rise and home appreciation slows.
2. Sports and Business Attract Families
According to NerdWallet, Frisco tops their list of best places to raise a young family out of more than 100 Texas cities surveyed. And these families will need a place to live. According to the Frisco Chamber of Commerce, as of February 1, 2015, more than 50,000 households call Frisco home. Builders cannot erect houses fast enough to meet the demand, so existing homeowners who plan to up size or downsize can take advantage of the upward trend before rising interest rates slow prices.
3. Families Have Kids
There are more than 40,000 students in Frisco’s schools and enrollment may climb to 66,000 by 2020. If growth continues, Frisco ISD will become the third largest school district in North Texas, behind Dallas and Fort Worth. With 35 elementary schools, 13 middle schools, and 7 high schools and more being built, taxes are needed to pay for educational facilities. Property and City taxes impact home affordability. A recent $267 million bond proposal, if approved by voters, would increase taxes about $112 per year for a homeowner with a $300,000 house. Even so, the average tax increase would likely be lower because the new homes that will be built during the next few years will redistribute the expense.
4. More People Means More Cars
“When you bring people in, you need more roads,” says Mike Eastland, executive director of the North Central Texas Council of Governments. More roads and public transportation will be built to accommodate the traffic. Areas that are easy to get in and out of are more attractive to buyers. Homes located close to shopping and transportation will likely demand a higher price than those with traffic nightmares. Established homes in older neighborhoods may not seem more attractive than a newer, bigger home just a bit further away, but many will want to be closer to desirable amenities, driving up demand for well-located existing homes.
5. Water Is a Precious Commodity
Overall environmental efficiency (and not just being “green”) will begin to concern buyers and increase demand for drought-tolerant landscapes, water capture systems, and water-efficient appliances and watering systems in both existing and new homes. Homes upgraded with these new features and located in communities and neighborhoods that conserve water will command top dollar in the future.
With all of this to consider, there might not be a better time to sell your Frisco home than in the next six months.
Main Image Source: Flickr/Scott Ellis