Frisco made its mark in yet another national city ranking Tuesday when WalletHub proclaimed it the third best place to buy a house in 2020.
The ranking, released Tuesday by the personal finance website, was based on a comparison of 300 cities of varying size using 24 metrics. Metrics included home value forecast, the average number of days until a house is sold and housing affordability.
Frisco’s ranking comes as a weighted average of scores from various metrics. It also ranked first for “affordability and economic environment” and second for cities with the lowest foreclosure rate.
Other Collin County cities also landed in the upper region of the list: Allen and McKinney came in as the 14th and 16th best places to buy a home, respectively, and Plano came in at 92nd.
Frisco’s distance on the ranking from other Collin County cities didn’t go unnoticed by David Long, Collin County Association of Realtors president.
“Frisco's doing everything right,” he said, “and you have land. You still have available land to develop and build. It's just your ratings on schools, business, taxes, all those are coming up to the top of the pile right now.”
Long said for those who are already in the area, the Collin County cities’ ranking on WalletHub is a confirmation of what they already know.
“Housing prices, even though they have gone up and are going up because we have such a low inventory, are still very reasonable compared to many parts of the country,” he said.
Frisco and other area cities like Allen, McKinney and Plano do well on rankings, he said, and people might come across these types of reports when looking to relocate with businesses like Toyota, J.P. Morgan or the PGA of America.
“If you're out in some other part of the country and you're thinking about moving or need to move because of employment or whatever, you're going to do some research, most likely, and everything is going to look great for us,” he said. “We're very fortunate in that regard.”
With that in mind, Long said he is concerned about first time homebuyers. An influx of people coming to the area, paired with a years-long inventory shortage, has pushed home prices up, he said.
“I was hoping last year or so before the COVID stuff hit and all that that we were going to start settling down where housing prices would increase like 2, 3 percent a year,” he said.
But in an end-of-July report, he said, Frisco’s median home price was up 6.4%. The same figure rose 4.9% in Allen. That could mean a bigger challenge for first time homebuyers or younger homebuyers, Long said.
However, he also said a large part of why companies choose to come to the area is due to a positive business environment and the ability to find housing that employees are likely to be able to afford.
“The only problem right now is the inventory shortage can be a little challenging to find that house,” he said. “But their employees can find a house.”