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Rising Home Values in Zip Code 38849: Guntown's Robust 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 38849, located in Guntown, Mississippi, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership and fluctuating average home and rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 38849 has shown a notable increase from 2013 to 2022. In 2013, 83% of residents were homeowners, and this percentage rose to 86% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $126,408, and by 2022, it had risen to $185,341, representing a 46.6% increase over nine years. This correlation suggests that despite rising home prices, more residents were able to become homeowners, possibly due to favorable economic conditions or increased local prosperity.
Federal interest rates have played a significant role in homeownership trends in zip code 38849. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable at around 81-83%. As interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 84%. Interestingly, when interest rates dropped again in 2020 (0.38%) and 2021 (0.08%), homeownership peaked at 87% in 2020 before settling at 86% in 2022, despite a rise in interest rates to 1.68% that year.
The renter percentage in zip code 38849 has fluctuated inversely to homeownership rates, decreasing from 17% in 2013 to 14% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $896, peaking at $1,197 in 2014 before declining to $842 in 2015. By 2022, the average rent had increased to $911, representing a modest 1.7% increase from 2013. The fluctuations in rent prices and renter percentages may be influenced by changes in the local economy, housing supply, and population dynamics.
In 2023, the average home price in zip code 38849 reached $186,598, a slight increase from 2022. This trend continued into 2024, with average home prices rising to $189,737. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-interest environment of previous years. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 38849 may continue to rise moderately over the next five years, potentially reaching around $210,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 38849 has demonstrated a strong trend towards homeownership, with rates increasing despite rising home prices. The area has shown resilience in its housing market, with homeownership rates remaining high even as interest rates fluctuated. The rental market has seen more volatility in both prices and occupancy rates. As the area moves forward, the interplay between interest rates, home prices, and local economic factors will continue to shape its real estate landscape.
