Market statistics released by the Collin County Association of Realtors this week show the median sales price of homes in Frisco rose 2.3% from March 2019 to $424,855 in March 2020. The percent of the original price received also rose 0.9% compared with last year to 97.1%.
New listings decreased 23.8% year-over-year in Frisco to 431 in March. The city also saw a 34.7% decrease in the total number of homes on the market compared with last March. Inventory this March was 701 homes.
Association President David Long said the housing market has “slowed down,” and he expects the effects of the pandemic will continue into April. Long said people who do not need to sell their homes right now are holding off on putting them on the market.
“We're doing a lot of things virtually now,” Long said. “You can show homes, and that's happening, [but] at a much reduced rate compared to what it normally would be at this time.”
He said in-person showings need approval from everyone involved, including agents, sellers and those looking to purchase. Potential buyers often have to sign a form stating that they do not have the coronavirus and must agree to wear a mask while in the house, he said.
“I'm sure it's hurting the industry, [but] it’s hurting all industries, not just ours,” Long said. “Under the proper conditions, people can still continue business.”
Lawrence Yun, chief economist for the National Association of Realtors, said home sales are likely to slow down for the second quarter of 2020 because of the broad observance of stay-at-home orders throughout the country.
“Sales will pick up when the economy reopens as many potential home buyers and sellers indicate they’re still in the market or will be in a couple of months,” Yun said in a news release. “Home prices remain stable as deals continue to happen with the growing use of new technology tools.”
The National Association of Realtors’ Economic Pulse Flash Survey, which was conducted April 12-13, found 33% of Realtors reported no closing delays. The top reasons for those who saw delays were financing, appraisals and home inspections, according to the release.
The number of homes under contract in Frisco decreased 30.8% to 244 in March 2020 compared with the same month a year ago. But the average number of days those homes were on the market also dropped. Compared to 77 days in March 2019, Frisco homes sold in March 2020 spent an average of 58 days on the market.
Long believes the state’s real estate market as a whole will bounce back from the slowdown in business, much like it did when the industry saw a downturn in 2008.
“We did much better than many other parts of the country, like Nevada or parts of California and Florida,” he said. “We came out of it much stronger, so I expect we’ll see something similar here.”
While there is not as much new real estate business as before the coronavirus pandemic, Long said the Collin County Association of Realtors is still providing services to its more than 8,500 real estate agents and nearly 500 affiliates. The association’s offices are closed, but he said staff are still filling orders for signs and related items. Long also said the association is offering a host of continuing education classes.
“Realtors have to take continuing education hours to renew our licenses every two years,” Long said. “Classes are still being offered via Zoom, so the schedule is still proceeding just as it was.”