Real Estate Market Update:
Collin County, Texas, July 2024
By Bruce Walpole, REALTOR®
Walpole Realty Group
Keller Williams Realty
Current Collin County Market Overview
In June 2024, the median home price in Collin County stood at approximately $539,000, with a median listing price per square foot of $220. The median sold home price was around $461,700, indicating that homes are selling below their listing prices by an average of 3.13%, and the lower home price segment of the market is more active than higher priced homes. This price differential, coupled with an average of 59 days on the market, suggests a trend toward a buyer’s market, where supply exceeds demand. This is a change to what the market has seen in the last few years but reflects a return to a more balanced market.
The market dynamics are further evidenced by the sale-to-list price ratio, which hovers around 96.87%. This means that most homes are being sold at a slight discount from their listed prices. Compared to previous years, this indicates a cooling trend, where buyers have more leverage and options.
Trends and Influences
Several factors are influencing the current real estate trends in Collin County:
- Interest Rates: With interest rates remaining relatively high compared to the historical lows of the past decade, borrowing costs have increased. This has put downward pressure on housing prices as buyers are more cautious about taking on large mortgages. The Federal Reserve has indicated that there will be a reduction in interest rates through the remainder of 2024, which will ease the effect that interest rates have on the buyer’s purchase decision.
- Inventory Levels: There are currently over 6,700 homes listed for sale in Collin County, with about 1,750 of these being new listings in the last week alone. The high inventory levels provide buyers with more options and contribute to the buyer’s market condition. Bottom line—buyers can be selective, and they have time to make informed decisions.
- Education and Amenities: The county is home to several top-rated school districts, which remain attractive features for families. Moreover, the area boasts numerous amenities, including high-quality grocery stores, cafes, and restaurants, enhancing the appeal of living in Collin County.
Market Segmentation
The housing market in Collin County is diverse, catering to various segments from luxury homes to more affordable housing options. For instance, new constructions in cities like Celina and Melissa are priced between $400,000 and $600,000, while more affordable options are available in areas like Princeton and Nevada, where homes are listed between $250,000 and $400,000. Luxury homes ($1M+) are less affected by market dynamics like changing interest rates. The luxury market continues to be a strong segment.
Buyer and Seller Insights
For buyers, the current market conditions offer an excellent opportunity to negotiate better deals. With homes staying on the market longer and selling below list prices, buyers can take their time to find the right property and potentially secure a home at a discount.
For sellers, it’s crucial to price properties competitively and be prepared for longer selling times. Enhancing the home’s appeal to attract the largest number of buyers through minor renovations or listing preparation can make a significant difference in attracting potential buyers. Sellers should also be aware of the potential issues and be prepared to address any concerns buyers may have.
Looking Ahead
The real estate market in Collin County is likely to trend toward a buyer’s market in the near term, barring significant economic changes or shifts in interest rates. Potential buyers should keep an eye on interest rate trends, while sellers might consider timing their sales to coincide with any potential market upticks.
As always, working with knowledgeable real estate agents who are familiar with the local market trends and can provide tailored advice is essential for both buyers and sellers to navigate this evolving market landscape effectively.
