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Zip Code 63384: Wellsville's Resilient Housing Market Faces New Challenges
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 63384, located in Wellsville, Missouri, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This small community, with a population of 1,852 in 2022, has seen interesting shifts in its real estate landscape.
The homeownership rate in this zip code has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 75%, which increased to 78% by 2022. This rise in homeownership coincided with an overall increase in average home prices. From 2016 to 2022, average home prices in the area rose significantly, from $100,744 to $154,870, representing a 53.7% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates stayed relatively stable around 75%. When interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), there was a slight dip in homeownership to 69% in 2019. However, as interest rates dropped again in 2020 and 2021, homeownership rebounded to 77% by 2021.
Renter percentages in the zip code have fluctuated inversely to homeownership rates, as expected. The percentage of renters increased from 24% in 2013 to a peak of 31% in 2019, before declining to 22% in 2022. Average rent prices have shown an overall upward trend, rising from $525 in 2013 to $676 in 2022, an increase of 28.8%. Interestingly, there were some fluctuations in rent prices, with a peak of $678 in 2017 followed by a dip to $592 in 2018, before rising again.
In 2023 and 2024, we see a reversal in the upward trend of average home prices in zip code 63384. The average home price dropped to $139,442 in 2023 and further decreased to $125,454 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in this area.
Looking ahead, based on recent trends and current economic conditions, we can project that average home prices in zip code 63384 may continue to face downward pressure in the short term due to high interest rates. However, if interest rates stabilize or decrease, we might see a gradual recovery in home prices over the next five years. Rent prices, which have shown more stability, are likely to continue their modest upward trend, potentially reaching an average of around $725-$750 by 2029. These projections assume relatively stable economic conditions and no major local economic shifts.
In summary, zip code 63384 has experienced a general trend of increasing homeownership rates and rising average home prices from 2013 to 2022, followed by a recent downturn in 2023-2024. Rent prices have shown a more consistent upward trend. The interplay between federal interest rates, homeownership rates, and housing prices is evident, with lower interest rates generally corresponding to higher homeownership rates and rising home prices. The recent spike in interest rates appears to have cooled the housing market, presenting a new dynamic for this small Missouri community.
