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Average Home Values and Ownership in Zip Code 59761: Rural Montana's Expanding Real Estate 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 59761, located in Wisdom, Montana, is a rural area characterized by its low population density and fluctuating demographics. Over the past decade, this region has experienced significant shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The ownership percentage in Wisdom has shown a notable upward trend, increasing from 66% in 2013 to 76% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2016, the average home price was $181,352, which steadily climbed to $346,368 by 2022, representing a remarkable 91% increase over six years. This trend suggests a growing preference for homeownership in the area, possibly driven by the perception of real estate as a sound investment.
Federal interest rates have played a crucial role in shaping homeownership trends in Wisdom. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the increase in homeownership from 66% to 75% during this time. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. However, the sharp rise in interest rates to 1.68% in 2022 and 5.02% in 2023 may have contributed to the slight dip in homeownership to 76% in 2022.
The renter percentage in Wisdom has inversely mirrored the homeownership trend, decreasing from 34% in 2013 to 24% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent increased from $508 in 2013 to a peak of $724 in 2020, before decreasing to $725 in 2022. This fluctuation in rent prices, coupled with the declining renter population, suggests a complex rental market affected by factors such as local economic conditions and housing availability.
In 2023 and 2024, the average home prices in Wisdom experienced a slight dip followed by a rebound. The average home price decreased to $335,731 in 2023 but is projected to rise to $355,919 in 2024. This trend occurs against the backdrop of historically high federal interest rates, which stood at 5.02% in 2023 and are expected to reach 5.33% in 2024. These high interest rates may impact housing affordability and market dynamics in the coming years.
Looking ahead, predictive models suggest that average home prices in Wisdom are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices may stabilize or see modest increases as the rental market adjusts to changing demand and economic conditions.
In summary, Wisdom has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in average home prices. The interplay between federal interest rates, local economic factors, and housing market dynamics has shaped these trends. As the area moves forward, it will be crucial to monitor how these factors continue to influence homeownership rates and housing affordability in this rural Montana community.
