This Dallas suburb's housing market is 'turning ugly,' indicates new report
By one measure, the housing market in McKinney is not sitting pretty. McKinney ranks 33rd on a new list of the 50 U.S. housing markets that are “turning ugly.”
It’s the only Texas city on the list, which was released by personal finance website GoBankingRates.com.
The report notes that while home prices have risen an average of 9.4 percent over the past two years across the U.S., prices have fallen 1.3 percent in McKinney. Plus, McKinney is saddled with one of the highest percentages of listed homes with price cuts among the cities on this list.
Here’s the data rundown for McKinney:
- Median list price: $379,243
- Two-year price change: -1.3 percent
- Percentage of underwater mortgages: 4.3 percent
- Foreclosures: 1 in every 2,546 homes
To identify places that face a sizable risk of a housing downturn, GoBankingRates evaluated 500 cities to study rates of foreclosures and underwater mortgages (houses that are worth less than what’s owed on them). The site also examined changes in median home listing prices, the number of days that homes spend on the market, and the percentage of for-sale listings with price cuts. It then combed through those figures to see which housing markets are lagging behind the U.S. as a whole.
The report is quick to point out that a housing market on the 50-city “turning ugly” list isn’t necessarily headed for a crash. However, a spot on the list indicates that conditions are ripe for a housing downturn.
But one realtor group isn't taking the report's findings as gospel.
Bill Head, communicators director at the MetroTexas Association of Realtors, says that contrary to findings, home sales in McKinney have been robust for several years. This August, 276 single-family home sales were recorded in McKinney, compared with 298 in August 2018, 327 in August 2017, and 276 in August 2016, according to MetroTex data. Meanwhile, the median sale price of a single-family home in McKinney rose from $279,450 in August 2016 to $336,500 in August 2019.
“In general, the real estate market in most municipalities in Collin County — and that includes McKinney — are the healthiest in North Texas, and I would see no reason that the market will not remain quite healthy moving forward,” he says.