Since 2012, the housing market in Plano has been booming, and local real estate agents say it shows no signs of slowing down.
Currently, the North Texas area is in a seller's market, meaning the supply of houses is lower than the demand and houses are staying on the market for less than six months. This has led to increasing home prices.
In the last quarter of 2014, North Texas homes sold for a median sales price of $194,000, up 10.9 percent from 2013, and stayed on the market an average of 66 days, according to North Texas Real Estate Information Systems Inc.
But Plano's housing trends have shown higher prices and fewer days on the market than the average for the North Texas area. Last year, Plano houses sold for a median price of $265,000, up 5.4 percent from 2013, and stayed on the market for an average of 35 days, according to the Collin County Association of Realtors. As long as inventory remains low, house prices are likely to continue rising.
"There are Realtors in line looking for housing for their customers," said Keller Williams Realtor Joe Camarena. "They're all my type. They all want that medium- size house. Obviously, the lack of supply creates that demand, and the price continues rising."
Seller's market, Plano's draw
When a recession hit the United States between 2007 and 2009, the housing market took a fall. Nearly 2 million homes were being constructed each year from 2000 to 2007, but that number dropped to 550,000 homes in 2009, according to an economic forecast created by Albert Niemi, Southern Methodist University's Cox School of Business dean.
But home starts picked up again in 2012, and 1.2 million new homes are expected to be constructed this year. Home starts in Collin County have followed suit with the national trend, which led to the beginning of the seller's market here in North Texas.
Job growth in Collin County is one reason the area is in a seller's market. Major national corporations such as Toyota Motor North America have announced plans to relocate its headquarters to Plano, bringing with them thousands of jobs. Toyota is expected to bring 4,000 jobs to the area.
"We are blessed in that so many companies have chosen to make their headquarters in Plano," said Ebby Halliday Realtor Cindy O'Gorman. "There are some in the business world who predict the wave of sales and multiple offers won't last long, but I believe with the corporate growth our sales will stay strong, even if other market areas slow down."
Other factors that attract homebuyers include low crime rates and high-rated school districts. Crime rates in Collin County are lower than the Texas and national averages, and more than 45 percent of people in the county are married with children, according to the National Association of Realtors.
"[Plano is] a very family-friendly environment," Camarena said, noting the parks in Plano and the reputation of Plano ISD. "The city is a great place to bring your family to raise."
Keeping up with the pace
Things move quickly in a seller's market. The average number of days a home stays on the market in Plano has decreased over the past several years, from 66 days in 2010 to 35 days in 2014.
Because houses don't stay on the market for long, buyers may not get a chance to look at a home more than once, Ebby Halliday Realtor David Long said.
"If it's a decent house [with] a decent price and you're not out there to see it in that first day, you're probably not going to get it," he said.
Homebuyers looking to move to Plano or elsewhere in Collin County should submit an offer soon after finding the home they want to own, O'Gorman said. Because inventory is low, sellers may receive multiple offers in quick succession, she said.
"When homes receive multiple offers[from buyers], you can assume they will sell over list price, so be prepared to come in with a strong offer from the beginning," O'Gorman said.
But even though a seller may receive multiple offers that are more than the listing price, the seller may not always choose the highest offer. Details of the offer such as the buyer's move-in date can play a role in a seller's decision, Long said.
"Sellers in some ways can demand more, expect more [right now]," he said.
Buyers may have to be patient if they are looking for more affordable homes because there is a lot of competition to get a quality home for a medium-range price, Camarena said.
"It's one of the hottest areas in the country," he said. "That's a good thing, but the other side of [the scenario] is it makes it tight."
Since 2012, the housing market in Plano has been booming, and local real estate agents say it shows no signs of slowing down.
Currently, the North Texas area is in a seller's market, meaning the supply of houses is lower than the demand and houses are staying on the market for less than six months. This has led to increasing home prices.
In the last quarter of 2014, North Texas homes sold for a median sales price of $194,000, up 10.9 percent from 2013, and stayed on the market an average of 66 days, according to North Texas Real Estate Information Systems Inc.
But Plano's housing trends have shown higher prices and fewer days on the market than the average for the North Texas area. Last year, Plano houses sold for a median price of $265,000, up 5.4 percent from 2013, and stayed on the market for an average of 35 days, according to the Collin County Association of Realtors. As long as inventory remains low, house prices are likely to continue rising.
"There are Realtors in line looking for housing for their customers," said Keller Williams Realtor Joe Camarena. "They're all my type. They all want that medium- size house. Obviously, the lack of supply creates that demand, and the price continues rising."
Other factors that attract homebuyers include low crime rates and high-rated school districts. Crime rates in Collin County are lower than the Texas and national averages, and more than 45 percent of people in the county are married with children, according to the National Association of Realtors.
"[Plano is] a very family-friendly environment," Camarena said, noting the parks in Plano and the reputation of Plano ISD. "The city is a great place to bring your family to raise."
