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Cherry Valley: Rising Home Values and Strong Ownership 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
Cherry Valley, located in Illinois, is a small suburban community with a population of 12,594 as of 2022. The city has experienced notable trends in homeownership rates, average home prices, and average rent prices over the past decade.
Homeownership in Cherry Valley has shown a strong upward trend, increasing from 83% in 2016 to 89% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2016, the average home price was $152,996, and by 2022, it had risen to $233,365, representing a substantial 52.5% increase over six years. This trend suggests that despite rising prices, more residents are choosing to invest in homeownership.
The relationship between federal interest rates and homeownership rates in Cherry Valley appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2016 to 2020 (ranging from 0.4% to 0.38%), homeownership rates increased from 83% to 88%. This correlation suggests that favorable financing conditions may have contributed to the rise in homeownership.
Conversely, the percentage of renters in Cherry Valley has decreased from 17% in 2016 to 11% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. In 2016, the average rent was $1,064, which increased to $1,164 by 2022, a 9.4% rise. This increase in rent prices, despite a smaller renter population, may indicate a tightening rental market or an overall increase in housing costs in the area.
In 2023 and 2024, Cherry Valley has seen continued growth in average home prices. The average home price reached $245,775 in 2023 and further increased to $258,037 in 2024. This represents a 10.6% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, suggesting strong demand in the local housing market.
Looking ahead, based on the historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in Cherry Valley. If the current trajectory continues, average home prices could potentially reach around $300,000 by 2029. For rent prices, assuming a similar growth rate to recent years, average rents could potentially increase to approximately $1,300 per month by 2029.
In summary, Cherry Valley has experienced a significant increase in homeownership rates and average home prices over the past decade. Despite rising interest rates in recent years, the housing market has remained robust, with continued appreciation in home values. The rental market, while shrinking in terms of the percentage of renters, has seen steady increases in average rent prices. These trends suggest a strong and growing housing market in Cherry Valley, with a clear preference for homeownership among its residents.
