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Eclectic, Alabama: Rising Home Values Amidst Population Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Eclectic, Alabama: A Decade of Housing Market Dynamics Eclectic, Alabama, is a small but growing community that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the city's evolving real estate landscape. From 2013 to 2022, Eclectic saw fluctuations in its homeownership rates, with a general downward trend. In 2013, the homeownership rate stood at 84%, gradually decreasing to 78% by 2020. However, there was a notable increase to 82% in 2022. During this period, average home prices in Eclectic showed a consistent upward trend. In 2013, the average home price was $199,032, which steadily increased to $352,921 by 2022, representing a substantial 77% increase over nine years.
The relationship between federal interest rates and homeownership rates in Eclectic appears to follow general economic principles. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates experienced some fluctuations but generally remained above 78%. The slight increase in homeownership to 82% in 2022 coincided with a rise in interest rates to 1.68%, possibly indicating a rush to purchase homes before rates climbed further.
Renter percentages in Eclectic showed an overall increasing trend from 2013 to 2021, rising from 16% to 23%. This trend coincided with an increase in average rent prices. In 2013, the average rent was $668, which rose to $844 by 2021, representing a 26% increase. However, in 2022, there was a notable decrease in the renter percentage to 18%, while the average rent continued to rise to $887. This shift could be attributed to the growing population, which increased from 4,399 in 2013 to 5,090 in 2022, potentially creating more demand for both rental and owned properties.
Looking at the most recent data, average home prices in Eclectic continued to rise in 2023 and 2024, reaching $362,175 and $376,661 respectively. This upward trend persisted despite the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the housing market in Eclectic appears to remain robust.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Eclectic will continue to rise, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections are based on the consistent upward trends observed in both metrics over the past decade.
In summary, Eclectic has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics. The most significant discoveries include the substantial 77% increase in average home prices from 2013 to 2022, the resilience of the housing market in the face of rising interest rates, and the overall growth in population. These factors collectively paint a picture of a dynamic and evolving real estate market in this Alabama town.
