97538, Selma, OR

The Selma, OR zip code 97538 has a population of just over 10,000 people and is located in the Central Oregon Coast region. The median home value in this zip code is $191,500 which is significantly higher than the national median home value of $177,500. This high home value can be attributed to the many affluent and well-educated residents who live in this area.

Home equity is a key factor in homeownership rates and home prices. Home equity is the difference between the market value of a homeowner's property and their outstanding mortgage or loan balance. As long as a homeowner's mortgage or loan balance remains below their home equity, they are considered to be "upside down" with respect to their property. When house prices rise above a homeowner's outstanding mortgage or loan balance, they are said to have "overpaid" for their property and may need to reduce their monthly payments or even sell their house in order to repay all of their debt. Conversely, if house prices fall below a homeowner's outstanding mortgage or loan balance, they are said to have "underpaid" for their property and may be able to keep their house if they make modest monthly payments on top of what they owe on their mortgage or loan.

In Selma, OR there has been an increase in both home equity and home prices over the past several years. Between 2009 and 2016 there was an increase of 36% in Selma's home equity values while simultaneously increasing by 18% in Selma's average residential sale price during that same time period (according to Zillow). This indicates that homeownership rates and home prices have been climbing steadily since 2009 despite economic recessionary conditions which typically lead to decreases in both measures over time.

The reason for this sustained increase in housing values appears to be twofold: firstly, there has been an influx of affluent new residents into Selma who are driving up demand for homes; secondly, existing homeowners have had more opportunity than ever before to refinance into higher-priced mortgages due to historically low interest rates (which have now increased somewhat). In addition, Selma has seen strong job growth over the past few years which has led many people who would not ordinarily purchase a house due to high costs (such as college graduates)to become homeowners here instead because housing costs are relatively low compared with other areas of the country.

Despite these positive trends however it should be noted that there are also some potential risks associated with high housing values: firstly, if interest rates rise again then many borrowers who were able afford high-priced mortgages when interest rates were lower will find themselves unableto repay those loans at current levels; secondly, if there is another major economic recession then housing values could decline significantly leading once againto widespread "underpayment"of homes by homeowners across Selma County (Zillow).