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Average Home Values and Ownership in Zip Code 63939: Fairdealing's Real Estate Trends
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 63939, located in Fairdealing, Missouri, has experienced significant fluctuations in population and housing trends over the past decade. This rural area has seen a general decline in population, coupled with interesting shifts in homeownership rates and housing prices. The ownership percentage in this zip code has shown a remarkable upward trend, increasing from 69% in 2013 to 85% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $111,468, which steadily climbed to $179,377 by 2022, representing a 60.9% increase over six years. This trend suggests a growing preference for homeownership in the area, despite rising property values.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the increased homeownership in the area. As interest rates remained low, more residents may have found it feasible to purchase homes, explaining the rise in ownership from 69% in 2013 to 81% in 2020.
Conversely, the percentage of renters in zip code 63939 has decreased over time, dropping from 31% in 2013 to 15% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $471 in 2013 to $615 in 2022, a 30.6% rise. This increase in rent prices, coupled with the decreasing renter population, suggests a tightening rental market with potentially higher-quality or more desirable rental properties commanding higher prices.
In 2023 and 2024, the housing market in zip code 63939 showed signs of cooling. The average home price decreased slightly from $179,377 in 2022 to $176,329 in 2023 and further to $172,314 in 2024. This cooling trend coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the slight decrease in home prices by potentially reducing buyer demand.
Looking ahead, based on the observed trends and current economic conditions, we can project the following for the next five years: Average home prices may experience a period of stabilization or slight decline due to higher interest rates, potentially settling around $165,000 to $170,000 by 2029. Average rent prices are likely to continue their upward trajectory, albeit at a slower pace. We might see average rents reach approximately $650 to $700 by 2029. The homeownership rate may plateau or slightly decrease as higher interest rates make mortgages less affordable, potentially settling around 80-82% by 2029.
In summary, zip code 63939 has experienced a significant increase in homeownership and average home prices over the past decade, coupled with rising rent prices despite a decreasing renter population. Recent increases in interest rates have begun to cool the housing market, and this trend is likely to influence both home prices and ownership rates in the coming years. The area appears to be transitioning towards a predominantly owner-occupied community with a smaller but potentially more competitive rental market.
