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Zip Code 16327: Rising Home Values and Strong Ownership in Blooming Valley, PA
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
Zip code 16327, located in Blooming Valley, Pennsylvania, has shown interesting trends in homeownership and housing prices over the past decade. This rural area has maintained a high rate of owner-occupied homes, consistently above 80%, while experiencing significant fluctuations in average home prices and rent rates.
The ownership percentage in zip code 16327 has remained relatively stable, with a slight increase from 84% in 2015 to 88% in 2022. During this same period, average home prices have shown a substantial upward trend. In 2015, the average home price was $105,853, which steadily increased to $178,748 by 2022, representing a 68.9% increase over seven years. This suggests that despite rising home values, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a role in homeownership trends in this zip code. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. This period coincided with the stable high homeownership rates observed in the area, as lower interest rates typically make mortgages more affordable and encourage home buying. The slight increase in homeownership from 84% to 88% between 2015 and 2022 aligns with this trend of favorable borrowing conditions.
Renter percentages in zip code 16327 have remained low, corresponding inversely to the high homeownership rates. The percentage of renters decreased slightly from 16% in 2015 to 12% in 2022. Average rent prices have shown some volatility during this period. In 2015, the average rent was $697, which increased to a peak of $792 in 2016 before declining to $650 in 2021 and then rising again to $730 in 2022. These fluctuations in rent prices don't seem to have significantly impacted the overall low proportion of renters in the area, possibly due to the strong culture of homeownership and the relatively affordable home prices compared to many other regions.
In 2023, the average home price in zip code 16327 reached $186,963, continuing the upward trend seen in previous years. However, 2024 has seen a slight decrease to $176,736. This recent dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 16327 may experience a period of stabilization or slight decline in the next 1-2 years due to the current high interest rate environment. However, if interest rates begin to decrease, we could see a resumption of price growth. Over the next 5 years, assuming economic conditions remain relatively stable, we might expect average home prices to show moderate growth, potentially reaching around $200,000 by 2029. Rent prices are likely to follow a similar pattern, with potential increases to an average of around $800-$850 per month in the same timeframe.
In summary, zip code 16327 has demonstrated a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. Despite some recent challenges posed by rising interest rates, the area's strong preference for homeownership and relatively affordable housing options suggest a resilient market that is likely to continue attracting residents who value the stability of owning their homes.
