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Southern Pines: Golf Town's Rising Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Southern Pines, a charming town in North Carolina, has experienced significant changes in its housing market over the past decade. Known for its golf courses and equestrian community, this picturesque town has seen a gradual shift in homeownership rates, accompanied by fluctuations in average home prices and rent costs. The town's housing landscape has been shaped by various factors, including population growth and economic conditions.
The homeownership rate in Southern Pines has shown a slight decline over the years, moving from 68% in 2013 to 64% in 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price in Southern Pines was $229,785. By 2022, this figure had nearly doubled to $434,759, representing an impressive 89% increase over nine years. This sharp rise in home values may have contributed to the slight decrease in homeownership, as higher prices potentially made it more challenging for some residents to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in Southern Pines. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership rates remained relatively stable, hovering around 66-68%. As interest rates began to rise more substantially from 2017 onwards, reaching 1.68% by 2022, we observed a corresponding decline in homeownership rates to 64%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in Southern Pines has also undergone notable changes. The percentage of renters increased from 31% in 2013 to 36% in 2022. This rise in renters coincided with an increase in average rent prices, which grew from $967 in 2013 to $1,099 in 2022, an increase of 13.6%. The town's population growth, from 17,270 in 2013 to 20,334 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, Southern Pines continued to see growth in its housing market. The average home price reached $461,558 in 2023 and further increased to $477,177 in 2024, representing a 9.8% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions and could potentially slow the rate of price increases in the coming years.
Looking ahead, based on the observed trends, we can project continued growth in both home prices and rent costs in Southern Pines over the next five years, albeit at a potentially slower rate. Average home prices could reach around $550,000 by 2029, while average rent prices might approach $1,300 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Southern Pines has experienced a gradual shift towards a higher proportion of renters, coupled with substantial increases in both home values and rent prices. The interplay between federal interest rates, population growth, and housing affordability has shaped these trends. As the town continues to grow and evolve, its housing market is likely to remain dynamic, balancing the needs of both homeowners and renters in this desirable North Carolina community.
