I have worked for builders in the Melissa area for several years and highly recommend the location. You get so much more house and features just a few minutes north of McKinney because the land is less expensive. The area is growing quickly and prices have no where to go but up. The time to invest in a community is in it's early growth as opposed to other local cities where the prices are already high as they build out.
Lara O'Keefe, CSP
Standard Pacific Homes
Thanks for your question about resale value in Melissa.
Prices are great in Melissa for several reasons that all relate to resale value. For newer construction, Melissa is farther out from the Dallas area which makes land prices lower for builders. Builder's costs and therefore their prices are lower in the area. Second, many of the homes in Melissa were built from 2004 to 2006 when the market was high and builders and lenders were financing everything and anyone who was breathing. This resulted in many foreclosures and short sales in the area as the market came down and owners couldn't sell when they needed to . The third reason that prices are great is that the market in general is still down and builders and even sellers who are not facing foreclosure must compete with the foreclosure market.
What this means to you is that prices right now are very low. There are opportunities in the pre-owned market that are as low as you can ever expect to see in Melissa. As builders reach their year end (not always the same as the calendar year) they are offering incentives to buyers for their existing inventory. I'm receiving promotions daily from builders across North Texas who are discounting inventory homes. Some of these discounts are being advertised only to Realtors.
When it comes to resale value, real estate is the same as any market. You want to buy low and sell high. You can obviously buy low in Melissa right now. The question is how long will you need to live in the area to be able to sell high? Plan on at least 2 years to get through this wave and the next wave of foreclosures and the current recession before the market stabilizes. Then add a couple of years for the values to increase enough to recover the costs of selling a home. If you don't plan on staying in your home for at least 4 - 5 years, then you might want to consider an area such as McKinney or Allen where property values have not suffered as much from foreclosures. The risk is that you may not see enough increase in a shorter time frame to produce any equity.
In general, the real estate market in Collin County is going to recover much faster than other areas of the country. This is one of the fastest growing counties in the country and McKinney is the fastest growing city in the nation. These factors alone will help our market stabilize and grow faster than other areas. Melissa is just on the edge of the growth, so it has suffered more losses due to foreclosures and builder competition. Melissa still needs to develop infrastructure, shopping centers, municipal facilities, churches and entertainment centers, the amenities that help push property values up. You can get a lots of home for your money in Melissa, but you should also evaluate the importance of these factors to your lifestyle.
Make it a great day!
- 53 homes have sold in Melissa
- Average days on market 93
-Highest home sold $ 473,500
-Majority of homes sold were in $200K to $300K range
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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Melissa has many benefits smaller town close to McKinney
You are right resale has been tough. I think it depends on how long you plan to live there. There is lots of open land and thousands of lots available or that could be available really at a moment's notice. That will likely keep resale prices in check as builders can often build the same home at near the same costs. So then the challenge becomes "how do you compete with the builder." We tend to see many foreclosures on the outskirts of DFW in places like this due to that factor. If it were me, I would sacrifice lot size, home size or whatever else you have to sacrifice to go further south. My preference would be Frisco...but wow there are so many factors to consider. Another will be what part of town you will work. The other factor is price.....if you can pick up a foreclosure in Melissa at a really discounted price it is something to consider or perhaps a small unique ranchette with some land and a neat house.