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Shumway: Rising Home Values and High Ownership Rates Amid Interest Rate Fluctuations
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
Shumway, located in Illinois, is a small community with a rich history and a dynamic real estate landscape. Over the past decade, this village has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Shumway has shown a notable upward trend, particularly in recent years. In 2013, the percentage of owner-occupied homes stood at 92%. This figure remained relatively stable until 2016 when it increased to 95%. After a slight dip in 2018 and 2019 to 91%, homeownership rebounded strongly, reaching an impressive 97% in 2022. This substantial increase in homeownership coincides with a significant rise in average home prices. In 2016, the average home price in Shumway was $134,963. By 2022, this figure had surged to $203,826, representing a remarkable 51% increase over six years.
The trend in homeownership rates appears to have been influenced by federal interest rates. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership in Shumway generally increased. This aligns with the well-established trend that lower interest rates tend to encourage homeownership by making mortgages more affordable. The sharp rise in homeownership to 97% in 2022 occurred despite a slight increase in interest rates to 1.68%, suggesting strong local demand for housing.
Conversely, the percentage of renters in Shumway has decreased over time, dropping from 9% in 2014 to just 3% in 2022. Interestingly, despite this decline in the renter population, average rent prices have shown volatility. In 2013, the average rent was $579, which remained relatively stable until 2017 when it dropped to $474. However, there was a significant spike in 2021, with average rent reaching $818, before dramatically falling to $482 in 2022. This fluctuation in rent prices, particularly the sharp decrease in 2022, may be partially attributed to the village's growing preference for homeownership and the limited rental market.
As of 2024, we have actual data showing that the average home price in Shumway is $198,991, a slight decrease from the 2022 peak of $203,826. This modest decline coincides with a significant increase in federal interest rates, which stand at 5.33% in 2024, up from 1.68% in 2022. This higher interest rate environment may be contributing to a cooling in the local housing market.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. If interest rates remain elevated, we might see a stabilization or slight decrease in average home prices, potentially settling around $190,000 to $200,000 by 2029. However, given the strong preference for homeownership in Shumway, prices are unlikely to drop dramatically unless there's a significant economic downturn. As for rent prices, the limited rental market makes predictions challenging, but we might expect average rents to fluctuate between $450 and $550, assuming the current trend of high homeownership continues.
In summary, Shumway has experienced a remarkable increase in homeownership rates, reaching 97% in 2022, accompanied by substantial growth in average home prices. The rental market has shrunk considerably, with volatile rent prices reflecting the limited supply. The recent uptick in interest rates appears to be moderating home price growth, setting the stage for a potentially more stable housing market in the coming years. These trends underscore Shumway's evolution into a predominantly owner-occupied community with a robust local real estate market.
