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Weatherly: Home Values Surge Despite Ownership Decline
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
Weatherly, a small community in Pennsylvania with a population of 2,544 as of 2022, has experienced significant changes in its housing market over the past decade. This analysis examines the relationship between homeownership rates, average home prices, and federal interest rates in the borough.
From 2013 to 2022, Weatherly witnessed a notable shift in its housing landscape. In 2013, the homeownership rate was 78%, with an average home price of $101,433. By 2022, homeownership had decreased to 73%, while average home prices rose substantially to $190,741. This inverse relationship suggests that increasing home values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Weatherly. Between 2013 and 2016, interest rates remained historically low, ranging from 0.11% to 0.40%. During this period, homeownership rates were relatively stable, fluctuating between 77% and 80%. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline, dropping to 73% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Weatherly have shown some volatility. In 2013, 22% of residents were renters, with an average rent of $622. By 2022, the renter percentage increased to 27%, while the average rent rose to $772. This upward trend in both renter occupancy and rent prices could be attributed to factors such as population growth or changes in housing preferences. Notably, there was a sharp increase in average rent from $363 in 2014 to $819 in 2015, which may have been influenced by local economic factors or changes in the rental market.
Recent data shows that the average home price in Weatherly continued to rise, reaching $200,741 in 2023 and $205,731 in 2024. This upward trajectory in home prices occurred despite a significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, yet home prices in Weatherly have continued to appreciate.
Predictive models forecasting 5-year trends anticipate that average home prices in Weatherly will continue to rise, albeit at a more moderate pace. The average home price could potentially reach around $230,000 by 2029. Average rent prices are also expected to increase, potentially reaching approximately $850 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In conclusion, Weatherly has experienced a gradual decrease in homeownership rates alongside substantial increases in average home prices over the past decade. Renter percentages have risen slightly, accompanied by fluctuations in average rent prices. The recent surge in federal interest rates has not yet significantly dampened home price growth, suggesting strong underlying demand in the local housing market. As the community continues to evolve, these housing trends will likely play a crucial role in shaping Weatherly's demographic and economic landscape in the coming years.
