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Silverhawke's Soaring Home Values: A Decade of Change in Gilbert, Arizona
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
Silverhawke, a neighborhood in Gilbert, Arizona, has experienced significant shifts in homeownership rates and property values over the past decade. This suburban community has seen a notable increase in owner-occupied homes, rising from 77% in 2018 to an impressive 98% in 2022. Concurrently, average home prices have more than doubled, while average rent prices have shown moderate growth.
The relationship between homeownership rates and average home prices in Silverhawke reveals an interesting trend. As average home prices increased from $204,906 in 2010 to $588,323 in 2022, the percentage of owner-occupied homes also rose substantially. The most dramatic increase in homeownership occurred between 2020 and 2022, jumping from 90% to 98%, coinciding with a sharp rise in average home prices from $386,229 to $588,323 during the same period.
Federal interest rates have played a crucial role in shaping homeownership trends in Silverhawke. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, corresponded with a steady increase in homeownership rates. As interest rates remained low, more residents likely took advantage of affordable financing options to purchase homes. The significant jump in homeownership from 2020 to 2022 occurred despite a slight increase in interest rates from 0.38% to 1.68%, suggesting other factors such as changes in local market conditions or demographics may have also influenced this trend.
Renter percentages in Silverhawke have shown an inverse relationship to homeownership rates, decreasing from 23% in 2018 to just 2% in 2022. Interestingly, average rent prices have fluctuated during this period, rising from $1,749 in 2018 to $2,048 in 2020, before decreasing to $2,047 in 2022. The sharp decline in the renter population, from 384 in 2018 to just 27 in 2022, may have contributed to the relative stability of rent prices despite the overall decrease in rental inventory.
In 2023 and 2024, Silverhawke's housing market showed signs of stabilization. Average home prices slightly decreased from $588,323 in 2022 to $555,457 in 2023, before rebounding to $568,911 in 2024. This occurred as federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and buyer demand.
Looking ahead, predictive models suggest a continued upward trend in average home prices for Silverhawke over the next five years, albeit at a more moderate pace than observed in the early 2020s. Average home prices are projected to reach approximately $650,000 by 2029. Average rent prices are expected to remain relatively stable, with slight increases tracking overall inflation, potentially reaching around $2,200 by 2029.
In summary, Silverhawke has transformed into a predominantly owner-occupied neighborhood with rapidly appreciating property values. The combination of historically low interest rates and rising home prices has driven a significant shift towards homeownership. As the market stabilizes and interest rates rise, future growth in both home prices and rental rates is expected to moderate, maintaining Silverhawke's status as a desirable residential area in Gilbert, Arizona.
