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Salisbury, Missouri: Home Values and Ownership Trends Defy Interest Rate Impact
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
Salisbury, Missouri, a small city with a population of 1,772 as of 2022, has experienced significant changes in its housing market over the past decade. Located in Chariton County, this city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Salisbury has shown a notable trend, increasing from 69% in 2017 to 80% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2018, the average home price in Salisbury was $136,466, which steadily climbed to $195,167 by 2022, representing a 43% increase over four years. This parallel growth in homeownership and home values suggests a strong demand for housing in the area, possibly driven by favorable economic conditions or increased attractiveness of the city to potential residents.
The relationship between federal interest rates and homeownership rates in Salisbury presents an interesting dynamic. Despite the federal interest rate rising from 1% in 2017 to 1.68% in 2022, the homeownership rate in Salisbury continued to increase. This trend contradicts the typical expectation that higher interest rates would discourage home buying. It suggests that other local factors, such as job growth or community development, may have had a stronger influence on homeownership decisions in Salisbury than national interest rate trends.
Conversely, the percentage of renters in Salisbury has decreased from 29% in 2017 to 20% in 2022. Despite this decline in the renter population, average rent prices have shown a general upward trend. The average rent increased from $541 in 2017 to $555 in 2022, with some fluctuations in between. This increase in rent prices, despite a decreasing renter population, could indicate a tightening rental market with potentially higher-quality or more desirable rental properties becoming available.
In 2023 and 2024, Salisbury's housing market has experienced a significant shift. The average home price dropped to $174,721 in 2023 and further decreased to $152,839 in 2024. This represents a substantial 21.7% decline from the peak in 2022. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of the housing market.
Looking ahead, based on recent trends and current market conditions, we can project potential scenarios for Salisbury's housing market over the next five years. Average home prices may continue to face downward pressure in the short term due to high interest rates, potentially stabilizing around $150,000 to $160,000. However, if interest rates begin to decrease, we could see a gradual recovery in home prices. Average rent prices are likely to remain relatively stable, possibly increasing at a rate of 1-2% annually, reaching around $580-$600 by 2029.
In summary, Salisbury has experienced a significant increase in homeownership rates and average home prices from 2017 to 2022, followed by a sharp decline in home values in 2023 and 2024. The rental market has shown resilience with steady increases in average rent despite a decreasing renter population. The recent rise in interest rates has notably impacted the housing market, and future trends will likely be influenced by the interplay between local economic factors and broader national economic conditions.
