4 real estate trends to know in Plano

North Texas has become a target for homebuyers from within and outside of the state. Here are four trends that illustrate the red-hot real-estate market in Plano:

Monthly rental housing prices in North Texas area increase1. Monthly rental housing prices in North Texas area increase
The North Texas housing market has affected more than home sale prices—rental housing costs in the surrounding cities have also steadily increased over the last four years.

Just as a lower inventory of available homes will cause home sale prices to increase, so will the costs of rental homes, said Jonna Fernandez, chief operating officer of the Collin County Association of Realtors.

All median monthly rental costs for Plano, Frisco, McKinney and Richardson increased from 2014 to 2017.

Some homebuyers may choose to sign a temporary lease while they continue to search for a home within their price range, which is another factor in the rental housing price increases, Fernandez said.

 Homes sold for $200,000 or less2. Homes sold for $200,000 or less
The number of homes sold at $200,000 or less in Plano has decreased as home sale prices have increased. That reason for that trend is twofold, Fernandez said. The homes that sell at that price point are the ones to be sold the quickest, and they often receive multiple offers from multiple buyers, she said. Some of those final offers subsequently end up being over $200,000.

 Surrounding cities build more new homes than Plano in recent years3. Surrounding cities build more new homes than Plano in recent years
Despite having a larger population than both Frisco and McKinney, Plano has the fewest number of houses built in 2014 or later, according to a 2015 U.S. Census survey. The highest number of homes built in Plano during a 10-year period was from 1990 to 1999. Both McKinney and Frisco’s most productive period was from 2000 to 2009.

 Appraisal protests increase4. Appraisal protests increase
The number of residential appraisal protests in Plano increased by more than 15 percent in the past year. Median home sale prices so far in 2017 are 9 percent higher in Plano than they were in 2016.

Bo Daffin, chief appraiser with the Collin Central Appraisal District, said it has consistently been the trend for the number of appraisal protests to increase when market values increase.