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High Homeownership Rates and Fluctuating Home Values in Zip Code 16613: Ashville's Unique Housing Market
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 16613, located in Ashville, Pennsylvania, is a predominantly rural area with a population of 1,948 as of 2022. This zip code has maintained a consistently high homeownership rate over the past decade, with a slight increase in recent years. The average home prices and average rent prices have shown fluctuations, reflecting the dynamic nature of the local real estate market.
The homeownership rate in zip code 16613 has remained relatively stable, with a slight upward trend in recent years. In 2013, the homeownership rate was 91%, which dipped slightly to 89% in 2017 before rising back to 92% in 2022. This high rate of homeownership suggests a strong preference for owning rather than renting in this area. Interestingly, the average home prices have shown a steady increase over the available data period. From 2018 to 2022, the average home price rose from $136,372 to $155,664, representing a 14.1% increase over four years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend observed nationally. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate in the area remained high and even increased slightly. This aligns with the principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter percentage in zip code 16613 has remained relatively low, fluctuating between 8% and 11% from 2013 to 2022. Interestingly, the average rent prices have shown some volatility during this period. In 2013, the average rent was $612, which increased to a peak of $730 in 2015 before gradually declining to $631 in 2022. This trend in rent prices doesn't appear to have a strong correlation with the renter percentage, which has remained relatively stable despite these fluctuations.
Looking at the most recent data, the average home price in zip code 16613 for 2023 was $154,488, showing a slight decrease from 2022. In 2024, the average home price further decreased to $145,695. This recent downward trend in home prices coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 16613 may continue to experience some downward pressure in the short term due to the current high interest rate environment. However, given the area's consistently high homeownership rate and previous upward trend in home prices, we expect prices to stabilize and potentially begin to rise again within the next 2-3 years. For rent prices, the forecast suggests a potential slight increase over the next five years, possibly reaching around $700-$725 by 2029, assuming economic conditions remain stable and population growth continues at its current pace.
In summary, zip code 16613 demonstrates a strong preference for homeownership, with rates consistently above 89% over the past decade. The area has seen a general upward trend in average home prices from 2018 to 2022, followed by a recent decline coinciding with rising interest rates. Rent prices have shown volatility but remain relatively affordable compared to national averages. The high homeownership rate, combined with recent market adjustments, suggests a stable and resilient local real estate market that is likely to adapt to changing economic conditions in the coming years.
