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Selma, NC: Home Values Soar as Ownership Rises in Growing Town
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
Selma, a charming town in North Carolina, has experienced significant demographic and housing market changes over the past decade. Located in Johnston County, this vibrant community has seen a steady increase in population and evolving homeownership trends. The town has witnessed fluctuations in ownership percentages, with a general upward trend in recent years, alongside rising average home prices and rent costs.
The relationship between homeownership rates and average home prices in Selma presents an interesting dynamic. In 2013, the homeownership rate stood at 49%, with an average home price of $98,592. As home prices began to rise, reaching $156,583 by 2019, the homeownership rate remained relatively stable at 50%. However, a notable shift occurred from 2020 onwards. Despite rapidly increasing average home prices, from $175,839 in 2020 to $254,333 in 2022, the homeownership rate saw a significant jump from 52% to 57%. This trend suggests that rising home values did not deter homeownership in Selma, possibly indicating strong local economic factors or increased desire for property ownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Selma. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. This low-interest environment likely contributed to the stability and subsequent increase in homeownership rates, making mortgages more affordable for potential buyers. The sharp rise in interest rates to 1.68% in 2022 coincided with the peak in homeownership at 57%, suggesting that some residents may have rushed to purchase homes before rates increased further.
Renter percentages and average rent prices in Selma have shown an inverse relationship to homeownership trends. In 2013, with 51% of residents renting, the average rent was $823. As the population grew from 9,824 in 2013 to 12,352 in 2022, average rent prices increased to $866. Interestingly, despite the rise in rent, the percentage of renters decreased to 43% by 2022. This decline in renters coincided with the increase in homeownership, possibly indicating a shift in residents' ability or preference to buy homes rather than rent.
The years 2023 and 2024 have brought further changes to Selma's housing market. Average home prices continued to rise, reaching $264,000 in 2023 and $275,601 in 2024. This upward trajectory occurs against a backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher rates may impact future homeownership trends and affordability in the town.
Looking ahead, predictive models suggest that Selma's housing market will continue to evolve. Over the next five years, average home prices are projected to maintain their upward trend, potentially reaching around $300,000 by 2029. Rent prices are also expected to increase, albeit at a more moderate pace, possibly reaching an average of $1,100 to $1,200 per month. These projections assume continued population growth and economic stability in the region.
In summary, Selma has demonstrated resilience and growth in its housing market. The town has seen a significant increase in homeownership rates despite rising home prices, possibly fueled by favorable interest rates in the early 2020s. The shift from renting to owning, even as both home prices and rent costs increased, suggests a strong local economy and a preference for homeownership among residents. As Selma moves forward, the interplay between interest rates, housing affordability, and population growth will be crucial in shaping the town's residential landscape.
