House Price Index (HPI):
The home appreciation charts are derived from the House Price Index (HPI). The HPI is "designed
to capture changes in the value of single-family homes in the U.S." and is published by the Federal
Housing Finance Agency (FHFA). "The HPI is a weighted repeat sales index, meaning that it
measures average price changes in repeat sales or refinancings on the same properties. This
information is obtained by reviewing repeat mortgage transactions on single-family properties
whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since
January 1975." Except for the home page, the HPI - All Transactions Indexes are shown in this site.
The All Transactions Indexes include quarterly sales price and appraisal data. The home page
shows the Purchase Only Index which includes sales price data only.
The House Price Index may appear to conflict with the figures from local, state or national realtor
associations. That's because the HPI isn't reporting the same information. When realtors publish
that home values fell by 4%, for example, they mean that the average sales price for all homes sold
through and reported to their listing services declined by 4%. If the volume of low priced home
sales increased while the volume of medium and high priced home sales were unchanged, then
low priced home sales will represent a larger portion of total home sales... resulting in a decline in
the average sales price for all homes sold and reported through that realtor association. That does
not mean that home values have fallen. It means that lower priced homes are selling at higher
volumes relative to medium and or high priced homes.
The terms House Price Index and Home Price Index, as used in this site, refer to the Federal
Housing Finance Agency (FHFA) House Price Index. The House Price Index data that is displayed
in this site or used in our charts was published by the Federal Housing Finance Agency (FHFA), is
in the public domain and is not subject to claims of copyright protection by this site or it's owner .