Jeff Wimpy

Little Elm is booming! The housing market is growing exponentially. There are many opportunities for buying and selling in this quaint little Dallas suburb. There are great deals and bargains to be had. If you're in the market for a new home, Little Elm could be just the right place.

Here at the Gunder Group, we have helped many people buy and sell homes in the Frisco and Little Elm areas. Over the past year we have noticed a few trends that distinguish the real estate markets in these neighboring towns. Time and time again, however, we see both buyers and sellers struggle with the same issue -- PRICE. Undeniably, the primary distinction that Little Elm brings to the table is, indeed, a much lower price point. With interest rates on the rise, Little Elm is poised for popularity!

Let's start with the price range. Little Elm has a reputation for being a premier location for affordable housing. If you're looking for a home priced under $200,000, then Little Elm is the right place! There are many deals to be found both in preowned and new construction markets. If you look at the bulk of the new subdivisions, they were planned communities in the low-120's to $190's. Fox and Jacobs, NuHome, Lennar, Village, Pulte, Gehan, Coleman, Kimball Hill, Ryland, and Centex have all sold (and are still selling) in this range. The new areas on the far west side of town heading towards Cross Roads and Aubrey are all following suite. Little Elm is intentionally a lower priced community.

In this price range, your primary concern should be location. Beware of your surroundings. There are still several manufactured homes and older neighborhoods that could have an adverse affect on your home value. Also, look out for power lines and backing up to busy streets. On the positive side, nearby schools are a plus, as is close access to main arteries like Eldorado Parkway, HWY 423, and Dallas Parkway.

What about homes in Little Elm that are priced OVER $200,000? After all, you can find great deals along Eldorado for top quality homes. We've had buyer's that literally paid $20,000 - $30,000 less for the exact same home in Little Elm that Frisco offers just a couple miles away. This is becoming a very popular price range for buyers in Frisco. However, Frisco is running out of invenotry for homes between $200k and $250k. It is my speculation that this price range is going to get very poplular in Little Elm a lot quicker than we realized. There is still some reservation, however, depending on your goals this could be a really smart move.

Long Term Goals. If you're looking to buy a home over $180,000 in Little Elm, plan on holding that home for a MINIMUM of 3 years. Traditionally, the problem with resale for higher priced homes in Little Elm has been real simple -- Frisco. Given the choice, people are buying in Frisco for homes over $200,000. However, the $200-$250k price range is becoming scarce in Frisco.

Another challenge that resellers face is the competition from new home builders. It is really difficult for the average homeowner to compete with the new home sales. These builders have deep pockets and can provide HUGE incentives. In order to beat their competitor down the street, they have to cut prices. The result, it can be a challenge to sell your home if you're still competing against new construction.

However, in the next few years, many of these subdivisions will be sold out. Consequently, the market will begin to shift more in the seller's favor based on the basic laws of supply and demand. If you hold on to your home until these subdivision are completely built out, you'll have a much greater chance of realizing a decent profit on your home. Keep in mind, the expansion of FM 423, Eldorado across the lake, Dallas Parkway up to Hwy 380, and the massive push for retail is going to make Little Elm area really hot property.

The Bottom Line. Little Elm is a great place to buy if you are a first-time home buyer, looking for a great investment property, or willing to stick around for a few years. Keep your purchase price under $250,000 and you'll be fine. If you are willing to hold on to your home for many years to come, buying a home over $200,000 could be a decent long-term investment. The fact that interest rates are starting to climb, Little Elm is more desirable than ever.

If you would like to talk more about buying a home in Little Elm, contact me today. I'd be happy to help in any way I can.

Author Information

Jeff Wimpy

Jeff Wimpy is a real estate agent with The Gunder Group and RE/MAX First Realty. Jeff and The Gunder Group specialize in helping clients buy and sell homes in Frisco, Little Elm, McKinney, Plano, Allen and other Denton and Collin County suburbs. While Jeff and his wife were former residents of Little Elm, they recently had a home built in Frisco!

For more information about the Frisco Real Estate Market, contact Jeff Wimpy at 214-773-0567 or email him by using the contact section of this website. He will be happy to talk more about this great town!