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Rising Home Values and Steady Ownership in Overlook, Mobile: A Decade of Housing Market Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Overlook, a neighborhood in Mobile, Alabama, is characterized by its high homeownership rates and stable housing market. Over the past decade, this community has experienced notable changes in ownership percentages, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Overlook has remained consistently high, ranging from 87% to 94% between 2013 and 2022. This strong preference for homeownership has coincided with a general upward trend in average home prices. In 2013, the average home price in Overlook was $111,830. By 2022, it had increased significantly to $181,893, representing a 62.6% growth over this period. The most substantial year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $143,993 to $162,231, a 12.7% rise.
Federal interest rates have played a role in shaping homeownership trends in Overlook. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates in Overlook remained high, between 89% and 92%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, there was a slight dip in homeownership to 87% in 2018. However, the community quickly rebounded, with ownership rates climbing back to 91% by 2020 despite interest rate fluctuations.
Renter percentages in Overlook have remained relatively low, ranging from 6% to 13% between 2013 and 2022. Interestingly, average rent prices have shown minimal fluctuation during this period. In 2013, the average rent was $1,063, and by 2022, it had decreased slightly to $1,047. The highest average rent was recorded in 2021 at $1,074. These stable rent prices, combined with the low percentage of renters, suggest a limited rental market in Overlook, with most residents opting for homeownership.
Looking at the most recent data, average home prices in Overlook continued to rise in 2023 and 2024, reaching $185,287 and $194,496 respectively. This represents a 5% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, standing at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the upward trajectory of home prices suggests ongoing demand for housing in the Overlook neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Overlook will continue to appreciate, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $225,000 to $235,000, assuming a moderate annual growth rate of 3-4%. Average rent prices are expected to remain relatively stable, potentially increasing slightly to around $1,100-$1,150 by 2029, reflecting the community's preference for homeownership and limited rental market.
In summary, Overlook has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The community has shown resilience in maintaining strong ownership percentages even during periods of interest rate fluctuations. The limited rental market, as evidenced by low renter percentages and stable average rent prices, further underscores Overlook's identity as a predominantly owner-occupied neighborhood. As we look to the future, Overlook is poised to continue its trend of steady home price appreciation, cementing its status as a desirable area for homeowners in Mobile, Alabama.
