Richardson | July 2023

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MARKET SNAPSHOT Since 2019, the number of homes on the market has decreased in each of Richardson’s ZIP codes. At the same time, the median sales price of homes has increased as more people move to the North Texas area.

75080 75081 75082

ARAPAHO RD.

HOMES ON THE MARKET

MEDIAN SALES PRICE

5-year percentage change

800 700 600 500 400 300 200 100

$800K $700K $600K $500K $400K $300K $200K $100K

+49.46%

11.90%

+35.94% +40.11%

16.10%

9.27%

75080

75081

75082

75080

75081

SOURCE: COLLIN COUNTY ASSOCIATION OF REALTORSCOMMUNITY IMPACT

GROWING DEMAND

city’s population is expected to grow to 138,460 by 2045, an increase of nearly 16% from 2020 that is partly driven by the nearly 100 corporate relocations to North Texas that have taken place over the last several years. Shana Acquisto, president of the Collin County Associ- ation of Realtors, attributes the growth to transportation connectivity, job availability and access to amenities. At the same time, the median home price has risen by more than 39% to $440,000 since 2019, while the number of homes on the market has declined by about 13% in that same time. “There’s going to continue to be stronger demand than there is supply for the near future,” Lynch said. A seller’s market Acquisto said she is beginning to see the real estate market stabilize, noting the change may take a while. However, she added the existing market is shap- ing the calculations people put into buying and selling homes. According to Lynch, around 45% of mortgages have an interest rate of 3% or less. The average in the Dallas area as of mid-July was around 7.22% for a 30-year xed mortgage, according to Realtor.com. “For an individual who owns a home that’s at an interest rate of around 3%, it’s going to be a challenge for them to ... buy another home at today’s rate,” Lynch said. When it comes to selling, higher interest rates have many reconsider- ing or looking to remodel rather than move, in part leading to the decline in available homes.

“Unless [someone] needs to sell ... they’re giving a second thought to whether they really want to because they’re going to give up that low inter- est rate,” Acquisto said. For homebuyers, Lynch said every percent increase in mortgage inter- est rates lowers a person’s purchas- ing power by 10%. According to data from the Collin County Association of Realtors, homes in Richardson were receiving 100% of the asking price on average in June. Due to these factors, Acquisto said many rst-time buyers struggle to enter the market, espe- cially when the supply of homes on the market declines. “Between the home [value] appre- ciation and continued strong demand, it’s driving up the home prices very quickly,” Lynch said. “At the same time, incomes for Texans are not going up that quickly.” Joe Boggs, branch manager with mortgage-lending company Supreme Lending, said this is an issue through- out the region. “Without wages increasing or house aordability returning, it may take a while for [the housing market] to stabi- lize,” he said. Acquisto said this means buyers may need to reconsider where they’re look- ing and their needs. However, Lynch notes that while buyers’ purchasing power may have declined, it could make cities such as Richardson more attractive than Dallas or northern Col- lin and Denton counties. “If you look into size of the home relative to the pricing, you can ... get a better deal in Richardson,” Lynch said.

According to experts, market demand can be determined by the number of closed home sales in a given period. Since the start of 2023 that number has reached 86% of the total homes sold in Richardson in all of 2020.

2020 2021 2022 2023*

0 300 600 900 1200 1500 1,202 1,400 1,289 1,036

Closed home sales

DECLINING TAXES

Property taxes collected by the city of Richardson have decreased by about 11% since 2019. City Manager Don Magner said the lowered tax rate helps keep the “community competitive and able to continue to attract people and business.”

$0.70

$0.63 $0.63

$0.56

$0.60

$0.62

$0.50

*AS OF JULY 25 SOURCES: COLLIN COUNTY APPRAISAL DISTRICT, DALLAS COUNTY APPRAISAL DISTRICTCOMMUNITY IMPACT

Building for growth As buyers look at dierent areas, Lynch said there are a many things that can help a city remain attractive as it grows to avoid losing new resi- dents to other cities, in turn losing out on tax dollars that can be used on services. Among those are providing trans- portation, access to quality health care and amenities in close proximity to neighborhoods, along with having high-performing schools and a low crime rate, she said. “People want access to shopping, the convenience of grocery stores, services, doctors and nail salons, things like that,” Acquisto said. “They want to be able to have it close by and have access.”

As Richardson—which is currently 97% built out—continues to grow, Lynch said rising prices and lack of available land to build on could con- tinue to push new residents to look to buy in areas farther north of Dallas County, noting future home develop- ment in the city will likely need to be denser and smaller in size. “I don’t see things slowing down at all,” Acquisto said. “Once [interest] rates start to come back down, which they will, we’re going to continue on with a boom.” Tim Glaze contributed to this report.

For more information, visit communityimpact.com .

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