81320, Cahone, CO

Cahone is a small town in the eastern plains of Colorado. The population was just over 1,000 in 2010. Cahone is located in the 81320 zip code and has a median home value of $128,000. Home values have increased by an average of 9% annually since 2002. In 2009, Cahone had the third highest rate of growth among all zip codes in Colorado.

The primary drivers of home equity and home prices are interest rates, local economic conditions, and population growth or decline. Interest rates affect both the demand for and supply of homes. When interest rates are high, it becomes more expensive to borrow money to buy a home and therefore there is less demand for homes. When interest rates are low, there is more demand for homes because people can borrow money at lower rates to purchase a home. Local economic conditions affect both the demand for and supply of homes by influencing job opportunities and wages. When local economic conditions are good, people may be more likely to want to live in a specific area because they believe that their income will increase as well as their housing costs will not be as high as other areas. Population growth or decline also affects the demand for and supply of homes by increasing or decreasing the number of people who want to live in an area. For example, if there are more jobs available in an area then people may be more likely to want to live there even if their housing costs are higher than other areas because they believe that they will make more money than they would living elsewhere.