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Waverly, Alabama: Home Values Soar Amid Changing Ownership Patterns
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
Waverly, Alabama, is a small community with a population of 2,669 as of 2022, spread across 2.77 square miles. This charming town has experienced notable fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight increase in homeownership, with average home prices rising steadily and average rent prices displaying more variability.
The homeownership rate in Waverly has shown a general upward trend, increasing from 75% in 2014 to 79% in 2022. This trend coincides with a significant rise in average home prices, which grew from $184,087 in 2014 to $336,685 in 2022, representing an impressive 83% increase over eight years. The peak of homeownership was observed in 2017 at 82%, corresponding to an average home price of $216,829. Despite the rising home prices, the town has managed to maintain a relatively high rate of homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Waverly. The period from 2014 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the increase in homeownership from 75% to 81% during this time. As interest rates began to rise more steeply from 2017 onwards, reaching 2.16% in 2019, the homeownership rate remained relatively stable, fluctuating between 80% and 82%. This suggests that other local factors may have helped sustain high homeownership rates despite increasing borrowing costs.
The renter population in Waverly has fluctuated inversely to homeownership rates, decreasing from 25% in 2014 to 21% in 2022. Average rent prices have shown considerable volatility during this period. In 2014, the average rent was $473, which increased to $805 in 2019, representing a 70% jump. However, rent prices then experienced a sharp decline to $420 in 2021 before rebounding to $693 in 2022. These fluctuations in rent prices appear to be influenced by changes in the town's population, which varied from a high of 2,754 in 2014 to a low of 1,839 in 2018, before increasing again to 2,669 in 2022.
Looking at the most recent data, the average home price in Waverly reached $342,916 in 2023 and further increased to $352,540 in 2024. This represents a continued upward trend in housing values. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the town.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Waverly will continue to rise, potentially reaching around $400,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are expected to stabilize and gradually increase, potentially reaching approximately $800 per month by 2029, assuming population growth remains steady and no major economic disruptions occur.
In summary, Waverly has demonstrated resilience in maintaining high homeownership rates despite rising home prices. The inverse relationship between homeownership and rental rates, coupled with the volatile nature of rent prices, suggests a dynamic housing market responsive to population changes and economic factors. The continued rise in home values, even in the face of increasing interest rates, indicates strong demand for housing in this Alabama community. As the town moves forward, balancing affordability with growth will be crucial for sustaining its attractive housing market characteristics.
