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Zip Code 96124: Rural Sattley's Evolving Home Values and Ownership Trends
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 96124, located in Sattley, California, presents an intriguing case study of a small rural community's housing market dynamics. Over the past decade, this area has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The ownership percentage in zip code 96124 has shown a generally upward trend, increasing from 74% in 2013 to 85% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $180,491 in 2013 to $399,111 in 2022, representing a 121% increase over this period. The correlation between rising home prices and increasing homeownership rates suggests a strong local housing market and possibly an influx of more affluent residents or second-home buyers.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 96124. The period of historically low interest rates from 2013 to 2021, with rates ranging from 0.08% to 0.14%, likely contributed to the increased homeownership rates observed during this time. The accessibility of affordable financing options during this period made homeownership more attainable for many residents, potentially explaining the jump from 74% homeownership in 2013 to 91% in 2019.
Conversely, the renter percentage in zip code 96124 has decreased from 25% in 2013 to 15% in 2022. Interestingly, despite this decline in the renter population, average rent prices have shown volatility. Average rent prices peaked at $1,657 in 2014, dropped to a low of $909 in 2017, and then rebounded to $1,971 by 2022. This trend suggests that while fewer people are renting, those who do are paying significantly higher prices, possibly due to a limited supply of rental properties in the area.
Looking at the most recent data, average home prices in zip code 96124 experienced a slight decrease from $399,111 in 2022 to $385,040 in 2023, with a marginal increase to $385,116 in 2024. This stabilization in home prices coincides with a significant rise in federal interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be tempering home price growth and could potentially impact homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 96124 will continue to rise, albeit at a slower pace than observed in the previous decade. This moderation is expected due to the higher interest rate environment and potential market saturation. Average rent prices are projected to maintain their upward trajectory, driven by the limited supply of rental properties and the area's desirability.
In summary, zip code 96124 has demonstrated a strong trend towards homeownership, with a concurrent rise in average home prices over the past decade. The recent stabilization of home prices and increase in interest rates mark a potential turning point in the local housing market. The rental market, while smaller, has shown resilience with rising average rents despite a decreasing renter population. These trends highlight the dynamic nature of this rural California housing market and its responsiveness to broader economic factors.
