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Canterbury's Rising Home Values: A Decade of Real Estate Dynamics in Mobile, Alabama
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
Canterbury, a neighborhood in Mobile, Alabama, has experienced significant changes in its housing market from 2013 to 2024. The area has seen fluctuations in homeownership rates and a consistent increase in property values, reflecting both local and national economic trends. Homeownership rates in Canterbury have varied over the past decade, starting at 72% in 2013, dropping to 58% in 2015, and then recovering to 63% by 2022. This fluctuation occurred alongside a substantial increase in average home prices, which rose from $142,378 in 2013 to $221,196 in 2022, marking a 55% growth over this period.
The relationship between federal interest rates and Canterbury's homeownership rates reveals interesting patterns. Paradoxically, when interest rates were at historic lows between 2013 and 2015 (0.11% to 0.13%), homeownership rates declined from 72% to 58%. This suggests that local factors had a stronger influence on the housing market than national interest rates during this time. As interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, homeownership rates in Canterbury stabilized and slightly increased, potentially indicating a rush to purchase homes before rates climbed further.
Renter percentages in Canterbury have mirrored the inverse of homeownership trends. The renter population increased from 29% in 2013 to a peak of 45% in 2018, before settling at 37% in 2022. Average rent prices have generally trended upward, rising from $957 in 2013 to $1,008 in 2022, with some fluctuations in between. Notably, there was a significant spike in average rent to $1,331 in 2021, possibly due to temporary market pressures or changes in the rental property mix.
The year 2023 saw a continuation of the upward trend in average home prices in Canterbury, reaching $232,999. This represents a 5.3% increase from 2022, despite the Federal interest rate rising to 5.02%. Moving into 2024, average home prices have further increased to $237,383, marking a 1.9% growth from 2023. The Federal interest rate has also seen a slight increase to 5.33% in 2024, potentially impacting future homebuying decisions.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Canterbury may continue to rise over the next five years, albeit at a more moderate pace. The rate of increase might slow down due to higher interest rates, potentially reaching around $260,000 to $270,000 by 2029. Average rent prices are also likely to continue their upward trajectory, possibly reaching $1,200 to $1,300 per month by 2029, assuming consistent demand and economic stability.
In summary, Canterbury has demonstrated resilience in its housing market, with homeownership rates rebounding after a mid-decade dip and property values showing consistent appreciation. The neighborhood's ability to maintain relatively stable homeownership rates despite rising interest rates suggests a strong local housing demand. The recent increases in both home prices and rents indicate a robust real estate market in Canterbury, likely driven by its desirable location and the overall growth of Mobile.
