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Silver Creek Housing Market Shifts: Population Decline and Home Value 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
Silver Creek, Mississippi: A Town in Transition Silver Creek, a small town in Mississippi, has undergone significant demographic and housing market changes over the past decade. The town has experienced a notable decrease in population, from 1,505 residents in 2010 to 872 in 2022. This decline has been accompanied by fluctuations in homeownership rates and average home and rent prices, creating a dynamic real estate landscape. The homeownership rate in Silver Creek has shown a general downward trend from 2013 to 2019, followed by a slight recovery. In 2013, the town boasted a high homeownership rate of 86%. However, this figure steadily declined to 71% by 2019. Interestingly, as homeownership rates decreased, average home prices generally increased. In 2013, the average home price was $93,484, rising to $103,394 by 2019. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends in Silver Creek. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained relatively stable at around 78-86%. However, as interest rates began to rise from 2016 onwards, reaching 2.16% by 2019, homeownership rates declined to 71%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Silver Creek has shown interesting patterns as well. As homeownership rates declined, the percentage of renters naturally increased, from 14% in 2013 to 29% in 2019. Average rent prices have fluctuated considerably during this period. In 2013, the average rent was $704, which dropped to $532 in 2014 before spiking to $888 in 2015. Since then, rent prices have generally remained in the $600-$700 range, with some year-to-year variations. The fluctuations in rent prices don't show a clear correlation with the increasing renter population, suggesting other factors may be influencing rental costs.
In 2023 and 2024, Silver Creek's housing market showed signs of cooling. The average home price decreased from $128,358 in 2022 to $114,596 in 2023, and further to $106,571 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling housing market by making mortgages more expensive for potential buyers.
Looking ahead, predictive models suggest that average home prices in Silver Creek may continue to experience a slight downward trend over the next five years, potentially stabilizing around $100,000 by 2029. Rent prices are expected to remain relatively stable, possibly fluctuating between $650 and $750 per month, barring any significant economic changes or shifts in local housing policies.
In summary, Silver Creek has experienced a declining population and homeownership rate over the past decade, coupled with generally rising home prices until recent years. The rental market has grown, with fluctuating but relatively stable rent prices. The recent cooling of the housing market, coinciding with rising interest rates, suggests a potential shift in the local real estate landscape. These trends highlight the complex interplay between population dynamics, economic factors, and housing affordability in small-town America.
