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Average Home Values and Ownership in Zip Code 17841: McClure's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 17841, encompassing McClure in Pennsylvania, presents an intriguing case study of real estate dynamics in a small community. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices over the past decade, reflecting broader economic trends and local market conditions.
Examining the homeownership trends in zip code 17841, we observe a slight decline from 86% in 2014 to 81% in 2022. This shift coincides with changes in average home prices, which have shown overall growth despite some fluctuations. In 2013, the average home price was $173,019, dropping to $130,866 in 2015 before steadily rising to $190,274 in 2022. This represents a 45.4% increase from the 2015 low point, indicating a strong recovery in the housing market.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates were at their highest, between 82% and 86%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we see a slight decrease in homeownership rates to 81%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 17841 have shown a moderate increase from 14% in 2014 to 19% in 2022. This trend coincides with significant fluctuations in average rent prices. The average rent rose from $646 in 2015 to a peak of $1,031 in 2021, before decreasing to $734 in 2022. The sharp increase in rent prices between 2020 and 2021 (from $730 to $1,031, a 41.2% jump) is particularly notable and may have influenced the slight increase in the renter population.
Looking at the most recent data for 2023 and 2024, we see that average home prices in zip code 17841 continued to rise, reaching $196,045 in 2023 before slightly decreasing to $192,726 in 2024. This represents a modest 3% increase from 2022 to 2023, followed by a 1.7% decrease from 2023 to 2024. Concurrently, federal interest rates have increased significantly, rising from 5.02% in 2023 to 5.33% in 2024, which may explain the slight cooling in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17841 may continue to experience moderate growth, albeit at a slower pace than seen in recent years due to higher interest rates. Average rent prices are likely to stabilize or show modest increases, influenced by the balance between housing supply and demand in the area.
In summary, zip code 17841 has demonstrated resilience in its housing market, with average home prices recovering strongly since 2015 despite a slight decrease in homeownership rates. The rental market has seen significant fluctuations, with a notable spike in average rent prices in 2021. The interplay between interest rates, home prices, and rental trends suggests a dynamic real estate environment in this Pennsylvania community, with potential for continued, albeit more moderate, growth in both the homeownership and rental sectors in the coming years.
