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Centreville, Alabama: Rising Home Values and Steady Ownership Rates Amid Market Fluctuations
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
Centreville, Alabama, a small city in Bibb County, has demonstrated a resilient housing market over the past decade. With a population of 4,167 in 2022 and an area of 9.45 square miles, Centreville maintains a modest urban density. The city has experienced notable changes in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Centreville has shown an upward trend, increasing from 72% in 2013 to 75% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $112,043, which steadily climbed to $185,347 by 2022, representing a 65% increase over nine years. This trend suggests a growing preference for homeownership despite rising property values.
Federal interest rates have played a crucial role in shaping homeownership trends in Centreville. From 2013 to 2016, interest rates were historically low, ranging from 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, between 69% and 72%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates surprisingly increased to 75%. This trend indicates that local factors in Centreville may have outweighed the impact of rising interest rates on homeownership decisions.
The rental market in Centreville has experienced its own set of fluctuations. The percentage of renters decreased from 28% in 2016 to 25% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $514, which increased to a peak of $660 in 2014 and 2015. However, by 2022, the average rent had decreased to $615. This decline in both renter percentage and average rent prices, despite a growing population, suggests a shift towards homeownership and potentially increased housing supply in the rental market.
Recent data shows that the average home price in Centreville reached $188,181 in 2023, indicating continued growth. However, in 2024, there was a slight decline to $182,566, suggesting a potential cooling in the housing market. This trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the moderation in home prices.
Predictive models forecast moderate growth in average home prices over the next five years, potentially reaching around $200,000 by 2029. This projection takes into account the recent slowdown and the impact of higher interest rates. For rent prices, a gradual increase is expected, potentially reaching an average of $650-$700 per month by 2029, assuming steady economic growth and population increase in Centreville.
In conclusion, Centreville has experienced a notable increase in homeownership rates and average home prices over the past decade, despite fluctuations in the rental market and rising interest rates. The recent moderation in home price growth, coupled with high interest rates, suggests a potential stabilization in the housing market. The city's ability to maintain high homeownership rates in the face of rising prices indicates a strong local preference for homeownership, possibly driven by factors such as community stability and long-term investment perspectives.
