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Average Home Values and Ownership in Zip Code 59263: Rural Montana's Real Estate Dynamics
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 59263, located in Scobey, Montana, presents an intriguing case study of housing dynamics in a small rural community. Over the past decade, this area has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 59263 has remained relatively stable, with a slight downward trend from 79% in 2014 to 76% in 2022. During this period, average home prices have shown a significant upward trajectory. In 2016, the average home price was $135,009, which steadily increased to $224,531 by 2022, representing a substantial 66% growth over six years. This rise in home values occurred despite the slight decrease in homeownership, suggesting that other factors, such as limited housing supply or increasing desirability of the area, may have contributed to the price appreciation.
Federal interest rates have played a role in shaping homeownership trends in zip code 59263. The period from 2014 to 2021 saw historically low interest rates, ranging from 0.09% to 1.68%. These low rates typically encourage homeownership by making mortgages more affordable. However, the slight decline in homeownership during this period, from 79% to 76%, indicates that other local factors may have counteracted the potential positive impact of low interest rates on homeownership.
Renter percentages in zip code 59263 have shown a modest increase, rising from 21% in 2014 to 24% in 2022. This trend coincides with fluctuations in average rent prices. The average rent peaked at $663 in 2013, then decreased to $524 in 2014. It subsequently rose to $620 in 2017 before declining again to $526 in 2022. The population of the zip code has also fluctuated, reaching a high of 1,446 in 2017 before decreasing to 1,057 in 2022. These population changes may have influenced rental demand and pricing in the area.
In 2023 and 2024, average home prices in zip code 59263 showed a slight decrease from the 2022 peak. The average home price in 2023 was $217,489, dropping marginally to $217,809 in 2024. This slight decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to a cooling in the local housing market.
Looking ahead, predictive models suggest that average home prices in zip code 59263 may continue to experience moderate growth over the next five years, albeit at a slower pace than seen in the 2016-2022 period. This projection is based on the historical trend of increasing home values and the area's relatively stable population. Average rent prices are expected to remain relatively stable or show slight increases, influenced by the balance between the modest growth in the renter population and the overall population trends in the area.
In summary, zip code 59263 has demonstrated resilience in its housing market, with steadily increasing home values despite slight decreases in homeownership rates. The rental market has shown more volatility, with fluctuating prices and a gradual increase in the renter population. The recent stabilization of home prices in 2023 and 2024, coupled with rising interest rates, suggests a potential shift in the local real estate dynamics that will be important to monitor in the coming years.
