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Rising Home Values and Ownership in Forsyth, Missouri: A Decade of Housing Market Shifts
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
Forsyth, located in Missouri, is a small but growing community that has seen significant changes in its housing market over the past decade. The city has experienced a general trend of increasing homeownership rates and rising average home prices, while also witnessing fluctuations in its rental market.
The homeownership rate in Forsyth has shown a steady increase from 71% in 2013 to 77% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $88,829, which has more than doubled to $195,110 by 2022. This correlation suggests that despite rising prices, more residents are choosing to invest in homeownership, possibly due to the long-term financial benefits and stability it offers.
The relationship between federal interest rates and homeownership rates in Forsyth aligns with well-established trends. As interest rates remained relatively low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates increased. This period of low interest rates likely made mortgage financing more accessible and attractive to potential homebuyers, contributing to the rise in homeownership from 71% to 76% during this time.
Conversely, the percentage of renters in Forsyth has decreased from 29% in 2013 to 23% in 2022. Despite this decline, average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $805, which increased to $941 by 2019, before dropping to $810 in 2022. These fluctuations in rent prices, coupled with the decreasing renter population, suggest a complex rental market influenced by factors such as housing supply, local economic conditions, and the growing preference for homeownership.
Looking at more recent data, the average home price in Forsyth continued to rise, reaching $208,629 in 2023 and slightly increasing to $208,696 in 2024. This trend occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. The continued appreciation in home values, even in the face of higher interest rates, indicates strong demand and resilience in the local housing market.
Applying predictive models to forecast future trends, it is anticipated that average home prices in Forsyth will continue to appreciate over the next five years, albeit at a more moderate pace. The rate of increase may slow due to the higher interest rate environment, but the strong local demand and limited housing supply are likely to support ongoing price growth. Average rent prices are expected to stabilize and potentially see modest increases, as the rental market adjusts to the shifting balance between homeownership and renting.
In summary, Forsyth has experienced a notable shift towards homeownership, with a corresponding increase in average home prices. The rental market has seen a decrease in the proportion of renters, while average rent prices have fluctuated but generally trended upward. These trends, combined with recent data showing continued home price appreciation despite rising interest rates, suggest a robust and evolving housing market in Forsyth.
