Zip Code 59868: Rising Home Values and Stable Ownership in Scenic Seeley Lake, Montana
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Seeley Lake, located in zip code 59868 in Montana, is a picturesque community known for its natural beauty and outdoor recreational opportunities. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising average home values. The ownership percentage in Seeley Lake has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate stood at 86%, which increased to 92% by 2020, marking a peak in the observed period. This substantial rise in homeownership coincided with a steady increase in average home prices. The average home price in 2013 was $243,123, which rose to $351,345 by 2020, representing a 44.5% increase over seven years.
The relationship between federal interest rates and homeownership rates in Seeley Lake appears to follow the well-established trend of lower interest rates encouraging higher homeownership. For instance, as interest rates remained low between 2013 and 2020 (ranging from 0.09% to 0.38%), homeownership rates in the area increased from 86% to 92%. This correlation suggests that the low-interest environment likely contributed to more affordable financing options for potential homebuyers in the area.
Renter percentages and average rent prices in Seeley Lake have shown an inverse relationship to homeownership trends. As homeownership increased, the percentage of renters decreased from 14% in 2013 to 8% in 2020. Interestingly, despite the decrease in renter population, average rent prices showed some volatility. The average rent price increased from $800 in 2013 to $864 in 2020, peaking at $881 in 2021, before slightly decreasing to $857 in 2022. This trend suggests that even with fewer renters, demand for rental properties remained relatively strong, possibly due to limited rental inventory or increasing property values.
Looking at the most recent data, the average home price in Seeley Lake reached $548,405 in 2023 and further increased to $563,101 in 2024. This represents a significant jump from the 2022 average of $558,975, indicating a continued strong housing market in the area. Notably, federal interest rates have also risen substantially, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in Seeley Lake, albeit potentially at a slower rate due to higher interest rates. Average home prices could potentially reach around $650,000 to $700,000 by 2029. Average rent prices are likely to follow a similar upward trajectory, potentially reaching $950 to $1,000 per month within the next five years, assuming current economic conditions persist.
In summary, Seeley Lake has experienced a significant increase in homeownership rates and average home prices over the past decade. The area has benefited from low interest rates, which have supported homeownership growth. However, recent increases in interest rates may moderate this trend. The rental market, while smaller, has shown resilience with stable to slightly increasing average rents. The community appears to be evolving towards a predominantly owner-occupied housing market, with continued appreciation in property values expected in the coming years.
