United States House Price Index (2023)

Frequency asked questions

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HOUSE PRICE INDEX FREQUENTLY ASKED QUESTIONS (updated February 26, 2018)

1. What is the value of the FHFA House Price Index (HPI)?

The FHFA House Price Index (HPI) is a broad measure of the movement of single-family house prices. It serves as a timely, accurate indicator of house price trends at various geographic levels. It also provides housing economists with an analytical tool that is useful for estimating changes in the rates of mortgage defaults, prepayments and housing affordability in specific geographic areas. The HPI is a measure designed to capture changes in the value of single-family houses in the U.S. as a whole, in various regions and in smaller areas. The HPI is published by the Federal Housing Finance Agency (FHFA) using data provided by Fannie Mae and Freddie Mac. The Office of Federal Housing Enterprise Oversight (OFHEO), one of FHFA’s predecessor agencies, began publishing the HPI in the fourth quarter of 1995.

2. What transactions are covered in the FHFA HPI?

The FHFA HPI is based on transactions involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac. Only mortgage transactions on single-family properties are included. Conforming refers to a mortgage that both meets the underwriting guidelines of Fannie Mae or Freddie Mac and that does not exceed the conforming loan limit. For loans originated in the first nine months of 2011, the loan limit was set by Public Law 111-242. That law, in conjunction with prior legislation, provided for loan limits up to $729,750 for one-unit properties in certain high-cost areas in the contiguous U.S. Mortgages originated after September 30, 2011 were no longer subject to the terms of prior initiatives and, under the formula established under the Housing and Economic Recovery Act of 2008, the “ceiling” limit for one-unit properties in the contiguous U.S. fell to $625,500. For 2019-acquired loans, the ceiling limit rose to $726,525 for one-unit homes in the contiguous U.S. Conventional mortgages are those that are neither insured nor guaranteed by the FHA, VA, or other federal government entities. Mortgages on properties financed by government-insured loans, such as FHA or VA mortgages, are excluded from the HPI, as are properties with mortgages whose principal amount exceeds the conforming loan limit. Mortgage transactions on condominiums, cooperatives, multi-unit properties, and planned unit developments are also excluded.

3. How is the HPI computed?

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. The HPI is updated as additional mortgages are purchased or securitized by Fannie Mae and Freddie Mac. The new mortgage acquisitions are used to identify repeat transactions for the most recent period and for each subsequent period since 1975. House price index reports are released on a monthly basis for the United States and regions and on a quarterly basis for a variety of other geographies. Most statistics in the reports reference price changes computed by FHFA’s standard “purchase-only” HPI. In some cases, however, the reported statistics reference alternative price measures. FHFA publishes – and makes available for download – several additional house price indexes beyond the standard “purchase-only” series. Although they use the same general methodology, the three alternatives rely on slightly different datasets as follows:

  • “All-Transactions” house price index. Appraisal values from refinance mortgages are added to the purchase-only data sample.
  • “Expanded-Data” house price index. Sales price information sourced from county recorder offices and from FHA-backed mortgages are added to the purchase-only data sample. This index is used annually to adjust the maximum conforming loan limits, which dictate the dollar amount of loans that can be acquired by Fannie Mae and Freddie Mac.
  • “Distress-Free” house price index. Sales of bank-owned properties and short sales are removed from the purchase-only dataset prior to estimation of the index.

Data constraints preclude the production of all types of indexes for every geographic area, but multiple index types are generally available. For individual states, for instance, three types of indexes are available. The various indexes tend to correlate closely over the long-term, but short-term differences can be significant.

4. How often is the HPI published?

A comprehensive report is published every three months, approximately two months after the end of the previous quarter. Beginning in March 2008, OFHEO (one of FHFA’s predecessor agencies) began publishing monthly indexes for census divisions and the U.S. FHFA continues publishing and updating these indexes each month.

5. How is the HPI updated?

Each month, Fannie Mae and Freddie Mac provide FHFA with information on their most recent mortgage transactions. These data are combined with the data from previous periods to establish price differentials on properties where more than one mortgage transaction has occurred. The data are merged, creating an updated historical database that is then used to estimate the HPI.

6. How do I interpret “four-quarter,” “one-year,” “annual,” and “one-quarter” price changes?

The “four-quarter” percentage change in home values is simply the price change relative to the same quarter one year earlier. For example, if the HPI release is for the second quarter, then the “four-quarter” price change reports the percentage change in values relative to the second quarter of the prior year. It reflects the best estimate for how much the value of a typical property increased over the four-quarter period (FAQ #2 reports the types of properties included in this estimate). “One-year” and “annual” appreciation are used synonymously with “four-quarter” appreciation in the full quarterly HPI releases. Similar to the “four-quarter” price changes, the “one-quarter” percentage change estimates the percentage change in home values relative to the prior quarter. Please note that, in estimating the quarterly price index, all observations within a given quarter are pooled together; no distinction is made between transactions occurring in different months. As such, the “four-quarter” and “one-quarter” changes compare typical values throughout a quarter against valuations during a prior quarter. The appreciation rates do not compare values at the end of a quarter against values at the end of a prior quarter.

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7. How are Metropolitan Statistical Areas (MSAs) and Metropolitan Divisions defined and what criteria are used to determine whether an MSA index is published?

MSAs are defined by the Office of Management and Budget (OMB). If specified criteria are met and an MSA contains a single core population greater than 2.5 million, the MSA is divided into Metropolitan Divisions. The following MSAs have been divided into Metropolitan Divisions: Boston-Cambridge-Newton, MA-NH; Chicago-Naperville-Elgin, IL-IN-WI; Dallas-Fort Worth-Arlington, TX; Detroit-Warren-Dearborn, MI; Los Angeles-Long Beach-Anaheim, CA; Miami-Fort Lauderdale-Pompano Beach, FL; New York-Newark-Jersey City, NY-NJ-PA; Philadelphia-Camden-Wilmington, PA-NJ-DE-MD; San Francisco-Oakland-Berkeley, CA; Seattle-Tacoma-Bellevue, WA; Washington-Arlington-Alexandria, DC-VA-MD-WV. For these MSAs, FHFA reports data for each Division, rather than the MSA as a whole.

FHFA requires that an MSA (or Metropolitan Division) must have at least 1,000 total transactions before it may be published. Additionally, an MSA or Division must have had at least 10 transactions in any given quarter for that quarterly value to be published. Blanks are displayed where this criterion is not met.

8. Does FHFA use the September 2018 revised Metropolitan Statistical Areas (MSAs) and Divisions?

Yes, FHFA uses the revised Metropolitan Statistical Areas (MSAs) and Divisions as defined by the Office of Management and Budget (OMB) in September 2018. The delineations became effective with the 2018Q4 HPI release in February 2019. These MSAs and Divisions are based on Census data. According to OMB, an MSA comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county as measured through commuting. For information about the current MSAs, please visit: https://www.whitehouse.gov/wp-content/uploads/2018/09/Bulletin-18-04.pdf

Previously, FHFA produced metropolitan area indexes based on the February 2013 delineations (and as revised in July 2015, August 2017, and April 2018) and, before that release, the December 2009 delineations provided by the OMB.

The 2018Q4 HPI report has a Technical Note which explains the transition to the newest definitions. The accompanying tables are posted on the HPI Downloadable Data page under the “Additional Data” section then the “Utility Files and Background Information for Index Construction” subsection. Information for the prior delineations are also posted on that page.

9. What geographic areas are covered by the HPI?

The HPI includes indexes for all nine census divisions, the 50 states and the District of Columbia, and every Metropolitan Statistical Area (MSA) in the U.S., excluding Puerto Rico. OMB recognizes 384 MSAs, 11 of which are subdivided into a total of 31 Metropolitan Divisions. As noted earlier, FHFA produces indexes for the divisions where they are available, in lieu of producing a single index for the MSA. In total, 404 indexes are released: 373 for the MSAs that do not have Metropolitan Divisions and 31 Division indexes. The starting dates for indexes differ and are determined by a minimum transaction threshold; index values are not provided for periods before at least 1,000 transactions have been accumulated.

In each release, FHFA publishes rankings and quarterly, annual, and five-year rates of changes for the MSAs and Metropolitan Divisions that have at least 15,000 transactions over the prior 10 years. In this release, 245 MSAs and Metropolitan Divisions satisfy this criterion. For the remaining areas, MSAs and Divisions, one-year and five-year rates of change are provided.

10. What is the methodology used by FHFA in computing the HPI?

The methodology is a modified version of the Case-Shiller® geometric weighted repeat-sales procedure. A detailed description of the HPI methodology is available upon request from FHFA at (202) 649-3195 or online at: http://go.usa.gov/8BBT.

11. How does the FHFA HPI differ from the Case-Shiller® Index?

Although both indexes employ the same fundamental repeat-valuations approach, there are a number of data and methodology differences. Among the dissimilarities:

  1. The Case-Shiller Indexes® only use purchase prices in index calibration, while the all-transactions HPI also includes refinance appraisals. FHFA’s purchase-only series is restricted to purchase prices.
  2. FHFA’s valuation data are derived from conforming mortgages provided by Fannie Mae and Freddie Mac. The Case-Shiller Indexes use information obtained from county assessor and recorder offices.
  3. The Case-Shiller Indexes are value-weighted, meaning that price trends for more expensive homes have greater influence on estimated price changes than other homes. FHFA’s index weights price trends equally for all properties.
  4. The geographic coverage of the indexes differs. The Case-Shiller National Home Price Index, for example, does not have valuation data from 13 states. FHFA’s U.S. index is calculated using data from all states.

For details on these and other differences, consult the HPI Technical Description (see http://go.usa.gov/8BBT) and the Case-Shiller methodology materials (see https://us.spindices.com/index-family/real-estate/sp-corelogic-case-shiller). A paper that analyzes in detail the methodological and data differences between the two price metrics can be accessed at http://go.usa.gov/8BBJ.

12. How does the FHFA House Price Index differ from the Census Bureau’s Constant Quality House Price Index (CQHPI)?

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The FHFA HPI covers far more transactions than the Commerce Department survey. The CQHPI covers sales of new homes and homes for sale, based on a sample of about 14,000 transactions annually, gathered through monthly surveys. The quarterly purchase-only HPI is based on more than eight million repeat transaction pairs over 43 years. This gives a more accurate reflection of current property values than the Commerce Department index. The HPI also can be updated efficiently using data collected by Fannie Mae and Freddie Mac in the normal course of their business activity.

13. Where can I access MSA index numbers and standard errors for each year and quarter?

In addition to the information displayed in the MSA tables, FHFA makes available MSA indexes and standard errors. The data are available in ASCII format and may be accessed at http://go.usa.gov/8kXz.

14. What role do Fannie Mae and Freddie Mac play in the FHFA HPI?

FHFA uses data supplied by Fannie Mae and Freddie Mac in compiling the HPI. Each of the Enterprises had previously created a weighted repeat-transactions index based on property matches within its own database. In the first quarter of 1994, Freddie Mac began publishing the Conventional Mortgage Home Price Index (CMHPI). The CMHPI was jointly developed by Fannie Mae and Freddie Mac. The CMHPI series covers the period 1970 to the present.

15. Why is the FHFA HPI based on Fannie Mae or Freddie Mac mortgages?

FHFA has access to this information by virtue of its role as the federal regulator responsible for these government-sponsored enterprises. Chartered by Congress for the purpose of creating a reliable supply of mortgage funds for homebuyers, Fannie Mae and Freddie Mac are the largest mortgage finance institutions in the U.S. representing a significant share of total outstanding mortgages.

16. When are the indexes normalized in the downloadable ASCII data?

The ASCII data for metropolitan areas are normalized to the first quarter of 1995. That is, the HPI equals 100 for all MSAs in the first quarter of 1995. States and divisions are normalized to 100 in the first quarter of 1980. The purchase-only indexes are normalized to 100 in the first quarter of 1991. Note that normalization dates do not affect measured appreciation rates.

17. Is the HPI adjusted for inflation?

No, the HPI is not adjusted for inflation. For inflation adjustments, one can use the Consumer Price Index “All Items Less Shelter” series. The Bureau of Labor Statistics’ price index series ID# CUUR0000SA0L2, for example, has tracked non-shelter consumer prices since the 1930s. That series and others can be downloaded at: http://data.bls.gov/cgi-bin/srgate.

18. How do I use the manipulatable data (in TXT files) on the website to calculate appreciation rates? The index numbers alone (for census divisions and U.S., individual states, and MSAs) do not have significance. They have meaning in relation to previous or future index numbers, because you can use them to calculate appreciation rates using the formula below.

To calculate appreciation between any 2 quarters, use the formula:

(QUARTER 2 INDEX NUMBER - QUARTER 1 INDEX NUMBER) / QUARTER 1 INDEX NUMBER

You can generate annual numbers by taking the four quarter average for each year or monthly numbers by finding the difference between two months.

19. How is the FHFA HPI constructed for MSAs? The website says that FHFA uses the 2018 definitions based on the American Community Survey and Census Bureau population estimates for 2015 to define each MSA. Is this true for all time periods covered by each index? Or do the definitions change over time as the Census expanded its MSA definitions? For example, if the definition of an MSA added three counties between 1980 and 2000, would the value of the index in 1980 cover the three counties that were not included in the 1980 SMSA definition?

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The HPI is recomputed historically each quarter. The MSA definition used to compute the 1982 (for example) index value in Anchorage, AK would be the most recent definition. The series is comparable backwards.

20. How can the HPI for an MSA be linked to ZIP codes within that MSA?

Although FHFA has published experimental house price indexes for some ZIP codes, those indexes are annual (i.e. quarterly index values are not provided). Researchers needing quarterly values for ZIP codes may be interested in using index values for the applicable metropolitan area.

Because ZIP codes sometimes overlap county boundaries, a single ZIP code can be located partially inside and outside of a Metropolitan Area. Thus, the development of a crosswalk between ZIP codes and Metropolitan Areas is not a straightforward exercise. The Department of Housing and Urban Development has released a lookup table that maps ZIP codes to the Metropolitan Area(s) that they fall within. That lookup file, as well as a discussion of the underlying technical issues, can be found here: http://www.huduser.org/portal/datasets/usps_crosswalk.html.

21. How and why is the HPI revised each quarter?

Historical estimates of the HPI revise for three primary reasons:

1) The HPI is based on repeat transactions. That is, the estimates of appreciation are based on repeated valuations of the same property over time. Therefore, each time a property "repeats" in the form of a sale or refinance, average appreciation since the prior sale/refinance period is influenced.

2) Fannie Mae and Freddie Mac (the Enterprises) purchase seasoned loans, providing new information about prior quarters.

3) Due to a 30- to 45-day lag time from loan origination to Enterprise funding, FHFA receives data on new fundings for one additional month following the last month of the quarter. These fundings contain many loans originating in that most recent quarter, and especially the last month of the quarter. This will reduce with subsequent revisions, however data on loans purchased with a longer lag, including seasoned loans, will continue to generate revisions, especially for the most recent quarters.

In connection with the release of the 2012Q2 HPI results, a special revision was made to two historical HPI values. In prior releases, the all-transactions index values for Vermont-1976Q1 and West Virginia-1982Q1 were both reported to be 100.01. Those values were not correct; index values for those respective periods should have been set to missing because no modeling data were available in the underlying sample. The HPI releases for 2012Q2 and later periods reflect the change.

22. What transaction dates are used in estimating the index?

For model estimation, the loan origination date is used as the relevant transaction date.

23. Are foreclosure sales included in the HPI?

Transactions that merely represent title transfers to lenders will not appear in the data. Once lenders take possession of foreclosed properties, however, the subsequent sale to the public can appear in the data. As with any other property sale, the sales information will be in FHFA’s data if the buyer purchases the property with a loan that is bought or guaranteed by Fannie Mae or Freddie Mac.

24. How are the monthly HPIs calculated?

The monthly indexes are calculated in the same way the quarterly indexes are constructed, except transactions from the same quarter are no longer aggregated. To construct the quarterly index, all transactions from the same quarter are aggregated and index values are estimated using the assigned quarters. In the monthly indexing model, all transactions for the same month are aggregated and separate index values are estimated for each month.

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25. How are the Census Division and U.S. HPIs formed?

As discussed in the Highlights article accompanying the 2011Q1 HPI Release (available for download at http://go.usa.gov/8k5d), the census division indexes are constructed from statistics for the component states. For the quarterly all-transactions and purchase-only indexes, the census division indexes are constructed from quarterly growth rate estimates for the underlying state indexes. Census division index estimates are “built-up” from quarterly growth rate estimates (monthly growth rates for the monthly index) for the component states.

The census division indexes are set equal to 100 in the relevant base periods. Then, the index values for subsequent periods are increased (or decreased) by the weighted average quarterly (or monthly) price change for the underlying states. Index values for periods before the base period are calculated in a similar fashion; beginning with the base period value, the preceding index values are sequentially determined so that the growth rate in each period always reflects the weighted average growth rate for the component states.

The national HPI is constructed in an analogous fashion, except that the weighted components are census divisions. Because the census divisions measures are themselves weighted averages of state metrics, the U.S. index is equivalent to a state-weighted metric.

26. What weights are used in forming the Census Division and U.S. HPIs?

The weights used in constructing the indexes are estimates for the shares of one-unit detached properties in each state. For years in which decennial census data are available, the share from the relevant census is used. For intervening years, a state’s share is the weighted average of the relevant shares in the prior and subsequent censuses, where the weights are changed by ten percentage points each year. For example, California’s share of the housing stock for 1982 is calculated as 0.8 times its share in the 1980 census plus 0.2 times its share in the 1990 census. For 1983, the Pacific Division’s share is 0.7 times its 1980 share plus 0.3 times its 1990 share.

For years since 2000, state shares are calculated as follows:

  • For the 2001-2005 interval, shares are straight-line interpolated based on the state shares in the 2000 decennial Census and the 2005 values from the American Community Survey (ACS).
  • For 2006-2017, the estimates are from the annual ACS.
  • Until 2018 ACS estimates become available, shares from the 2017 ACS are used for subsequent periods.

The year-specific estimates of the state shares of U.S. detached housing stock can be accessed at https://go.usa.gov/xnhpK.

27. For those HPIs that are seasonally adjusted, what approach is used in performing the seasonal adjustment?

The Census Bureau’s X-12 ARIMA procedure is used, as implemented in the SAS software package. The automated ARIMA model-selection algorithm in X-12 is employed, which searches through a series of seasonality structures and selects the first that satisfies the Ljung-Box test for serial correlation.

To obtain more information on the HPI contact us via the Data and Research Contact page at http://go.usa.gov/8kN3.

28. Do you have an HPI that includes loans which are not purchased or securitized by Fannie Mae and Freddie Mac?

Yes, the expanded-data index includes purchase-money mortgages from other sources. The approach to estimating the expanded-data HPI is detailed in the Highlights article published with the 2011Q2 HPI at http://go.usa.gov/8kNm. In general, the methodology is the same as is used in the construction of the standard purchase-only HPI, except a supplemented dataset is used for estimation. The augmented data include sales price information from Fannie Mae and Freddie Mac mortgages as well as two new information sources: (1) transactions records for houses with mortgages endorsed by FHA and (2) county recorder data licensed from CoreLogic. The licensed county recorder data do not include records in many U.S. counties—particularly rural ones. To ensure that the addition of the CoreLogic data to the estimation sample does not unduly bias index estimates toward price trends in urban areas, the expanded-data index for certain states is estimated by weighting price trends in areas with CoreLogic coverage and other areas. Details on this sub-area weighting can be found in the text of the Highlights piece referenced above.

29. Is there an HPI that corrects for distressed sales?

FHFA released a “distress-free” HPI in 2012Q2 along with the Highlights article at http://go.usa.gov/8kNJ. The index is a version of the purchase-only index that removes short sales and sales of bank-owned properties from the transactions data used to compute that traditional index. The index is still in a developmental stage. An analysis of how distressed sales affect the FHFA HPI is provided in an FHFA Working Paper released August 2013 at http://go.usa.gov/8kRB.

30. Can I use the data in the HPI and, if so, how should the index be cited?

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Yes. The FHFA HPI data are freely available for download at https://www.fhfa.gov/hpi. To cite the index in an article or story, we suggest at least an attribution like “Source: FHFA HPI” or “Source: Federal Housing Finance Agency House Price Index (HPI)”. Additional clarifications could be helpful to denote the type of index (purchase-only, all-transactions, expanded-data) and whether the data are adjusted for seasonality or inflation. A more detailed citation might be “Source: FHFA HPI (purchase-only, seasonally-adjusted, nominal)”.

Naming

Beginning with release of the August 2008 data the OFHEO indexes have been renamed. Since OFHEO is now part of the Federal Housing Finance Agency (FHFA), the series are now referred to as the FHFA Home Price Indexes.

FAQs

How reliable is house price index? ›

This index is one of the most reliable when it comes to analysing past market trends, but is less dependable for predictions. This is due to the fact that the index is based upon time of registration rather than time of sale, so there can be a considerable delay on the data being reported.

Is HPI accurate? ›

A great benefit of HPI valuations is that they are time efficient, using sites like Zoopla, you can often get a valuation in seconds. However, their accuracy is always limited, and with apps like Zeus you can easily improve upon it, at least 16% to be precise .

Will US housing prices drop in 2022? ›

Will House Prices Go Down? It's unlikely that home prices will go down in 2022 and beyond. Freddie Mac predicts home prices will grow at a slower rate of 4% in 2023, but they're not going to drop in the coming years. Remember, the only factors that could cause home prices to go down are related to supply and demand.

What does the house price index tell us? ›

The FHFA HPI measures average price changes in sales or refinancings on the same properties. This information is obtained by reviewing mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac.

How often is the house price index updated? ›

8.5 Monthly change and annual change.

How is property price index calculated? ›

The current PPI is computed using the stratification method. Under this method, transacted properties are grouped into different categories based on property type, tenure, completion status, and region. The median prices for each category are then aggregated using 12-quarter moving average weights to derive the PPI. 2.

Can a HPI Check be wrong? ›

The HPI Guarantee does not cover the vehicle's descriptive information (including import status), mileage, value, V5 registration document checks, or if the loss has arisen as a result of a fraudulent transaction. The HPI Guarantee is valid for two years from the date of the check.

Is a HPI Check 100 reliable? ›

Of course, the data is only going to be as accurate as to how it has been reported, but according to our own internal reporting it has an accuracy of over 99.9%. In other words, the chances of the data being incorrect are very slim.

How long does it take for HPI to clear? ›

The process to claim back your losses after being sold a car with outstanding finance is relatively straightforward, but could take between one to six months, depending on the particulars of your case.

Will house prices ever go down? ›

This could in turn push average mortgage rates upwards of 8% (while still historically low, that is more than double the 1.6% rate recorded at the end of 2021) Based on this data, Capital Economics has forecast house prices to rise throughout 2022, before falling by 5% in 2023.

Are US house prices falling? ›

Home sales fell 19.9 percent from August 2021 to August 2022, the National Association of Realtors says. The median house price in August 2022 was $389,500. Homes' rate of appreciation, per NAR, was 7.7 percent from August 2021 to August 2022.

What will happen to house prices in 2022? ›

It said house prices will have risen 6 per cent by the end of 2022 but that they will fall 5 per cent in 2023 and a further 5 per cent in 2024 as a result of the sudden spike in mortgage rates caused by the government's fiscal plans.

Is a high HPI good? ›

If you're a seller and the HPI in your area is rising, it could be a good time to list your home. You might be able to sell it for a higher price. A rising HPI could be a sign that demand is on the rise for your community. If you're buying, you might find that homes are selling for higher asking prices.

Does the house price index account for inflation? ›

The House Price Index is considered a “constant quality” index because the difference in the quality of housing is controlled by tracking the same properties over time. The HPI is not adjusted for inflation, so it reflects nominal gains.

What affects HPI? ›

A few economical factors that are most likely to affect the HPI are: GDP of the nation. Unemployment rate. Mortgage rate.

Is Jan 2022 a good time to sell a house? ›

Higher Median Days on Market in January

This leads to higher days on the market for homes listed during this time. Based on a report from FRED, January 2021 and 2022 recorded the highest DOM at 71 and 61 days, respectively.

What time of year are house prices highest? ›

Following a trend of higher listing prices, during the period from April to August, more homes sold above the list price than any other time throughout the year. For comparison, in January 2021, only 33.1% of homes sold above the list price than in June 2021, where 56.3% sold above the list.

How much will my house be worth in 2030? ›

California is set to have the highest average home next decade, with a predicted price of $1,048,100 by September of 2030, if prices continue to grow at the current rate.

How are real house prices calculated? ›

The real house price index is given by the ratio of the nominal house price index to the consumers' expenditure deflator in each country from the OECD national accounts database.

Which index is used to determine the trend of private property market? ›

About URA Real Estate Statistics

As mentioned, the Urban Redevelopment Authority (URA) releases real estate statistics for the private property market every quarter.

What is HPI growth? ›

Property prices have risen by 0.9% compared to the previous month, and risen by 13.6% compared to the previous year.

How long is HPI Check valid for? ›

Duration of HPI Guarantee

The HPI Guarantee is effective for a period of two years from the date of your HPI Check (the “Guarantee Period”).

Are all HPI checks the same? ›

Are all HPI checks the same? No, not all HPI checks are the same. Vehicle history checks can vary with what they include and so can the price you pay. To get your value for money, you need to be sure that the checks you are completing are comprehensive.

What does Fully HPI clear mean? ›

HPI clear essentially means that the vehicle you're hoping to buy has had an HPI Check which showed no adverse data. It is a great trust indicator and the ultimate seal of approval when buying a used car.

Is HPI Check necessary? ›

A HPI vehicle history check is an invaluable service allows used car buyers to find out more about a car's history before they commit to a purchase. The HPI check consists of multitudes of information regarding your vehicle, providing peace of mind and helps to prevent any costly repercussions further down the line.

Is there a free HPI Check? ›

There's no such thing as a Free HPI Check so be extremely cautious of any services that claim to provide an HPI Check Free. A 'Free HPI Check' is not genuine and will not provide you with the information needed to keep you protected from car scams and motor fraud.

Does HPI Check show ownership? ›

A HPI check will confirm the make, model, number of doors, current and previous colours and how many owners the car has had.

How do you remove HPI marker? ›

To do so, you will need to produce proof of new ownership, as well as valid tax, MOT and insurance documents. If you take these documents to a police station and explain that you are the new owner of the car, then they may remove the marker.

What information do you need to do a HPI Check? ›

All you need is the car's registration number or V5C number to start using it. But the DVLA doesn't provide a HPI Check or full vehicle history report. The DVLA information is part of any car check, including HPI.

Where does HPI information come from? ›

Information provided in your HPI Check comes from a variety of data sources. These include: the DVLA, Society of Motor Manufacturers & Traders (SMMT), the Police, The Association of British Insurers, and numerous finance companies.

Is it smart to buy a house right now? ›

Based on data, now is a good time to buy a house — and first-time buyers agree. According to Fannie Mae's National Housing Survey, more than 60% of renters would buy a home if their lease ended. Most expect rents to rise sharply in the next 12 months. The housing market may favor Fall home buyers.

Can house prices increase forever? ›

Sure, anything “can” happen. There are lots of major cities after all and some will rise while others may fall. It's my opinion that real estate prices in major cities “will” continue to rise with the on-going trend of urbanization, unabated besides a brief detour during COVID.

What happens when the housing market crashes? ›

During a housing market crash, the value of a home decreases. You will find sellers that are eager to reduce their asking prices. Sellers may be more motivated to bargain on price or make concessions to buyers.

Will prices go down in 2023? ›

So consumers can expect that this year will be the worst for inflation, with prices estimated to go down by 2023, according to the latest Morningstar research.

Will mortgage interest rates go down in 2023? ›

Mortgage rates expected to fall to 5.4% by late 2023, banking group projects. After more than doubling this year, mortgage rates are expected to retreat in 2023, according to an updated forecast from the Mortgage Bankers Association.

What will happen to US housing market? ›

On a month-over-month basis, home prices declined by 0.7% in August 2022 compared with July 2022. The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.0% from August 2022 to September 2022 and on a year-over-year basis by 3.2% from August 2022 to August 2023.

Is now a good time to move house 2022? ›

However, even with one or two quarter percent rise, mortgage rates will still remain low in comparison to historical rates. And there are still lots of low-interest rate products available, so if you're able to move in the first quarter of 2022 especially, you should still be able to get a good deal.

Is buy to let worth it 2022? ›

The simple answer to this is yes! Done well, buy-to-let can deliver excellent returns, but the first thing you have to appreciate is that this won't always happen quickly. Realising good returns for buy-to-let versus other financial investments will typically take longer as the costs to invest are higher.

How much did house prices drop in 2008? ›

During the financial crisis, house prices fell by a total of 26.4 percent - from a high of 10.8 percent in June 2007, to a low of a -15.6 percent in February 2009. But the largest drop in annual house price growth in a month during this time period was 2.5 percent - half of that recorded for May to June this year.

Is Jan 2022 a good time to sell a house? ›

Higher Median Days on Market in January

This leads to higher days on the market for homes listed during this time. Based on a report from FRED, January 2021 and 2022 recorded the highest DOM at 71 and 61 days, respectively.

How often do houses go above asking price? ›

Inflation and persisting housing supply shortages may change the way you buy—and how much you pay for—your next home. In April 2022, 58.8% of homes sold for more than the asking price, according to Redfin.

What time of year are house prices highest? ›

Following a trend of higher listing prices, during the period from April to August, more homes sold above the list price than any other time throughout the year. For comparison, in January 2021, only 33.1% of homes sold above the list price than in June 2021, where 56.3% sold above the list.

Is shared ownership worth it? ›

You don't have greater protection under shared ownership

Just because this is a government backed scheme doesn't mean you get any more protection. Costs can spiral. Check you can afford increased maintenance charges. While rents start low, expect these to increase.

Should we sell our house now or wait? ›

With continued supply shortages and high buyer demand, now is a good time to sell your home. And with interest rates on the rise, it may be better to sell sooner rather than later — if rates spike much more, some prospective buyers may retreat from home shopping. But consider your reasons for selling carefully.

Should I sell my house now or wait until 2022? ›

Ahead of 2022, many homeowners were able to lock into mortgage rates below 3%, which makes selling any time in the near future far less attractive. Unless other factors are making a move necessary, enjoy the low interest rate you have locked in and continue to build equity in your home.

Is 2023 a good time to buy a house? ›

Despite housing prices expected to drop in 2023, it will become more expensive to purchase a home. According to a new projection from Freddie Mac, the for-sale cost of a home is expected to drop . 2% in 2023.

How do you win a bidding war house in 2022? ›

9 ways to win a bidding war
  1. Find out what the seller wants. ...
  2. Get a preapproval or precommitment for a mortgage. ...
  3. Be flexible with the timing. ...
  4. Offer a large earnest money deposit. ...
  5. Be a cash buyer. ...
  6. Offer concessions to the seller. ...
  7. Offer an appraisal gap guarantee. ...
  8. Write a 'love letter' to the seller.
11 May 2022

Is 20k over asking enough? ›

This is an obvious way, and it's often the ultimate result of bidding wars. Offering $20,000 above the asking price can still mean you're getting a good deal, Conti says.

Should I offer asking price 2022? ›

If the market is balanced between buyers and sellers and the asking price is fair and reasonable, you may want to offer what they're asking. This is especially true of a house that you want that was recently listed – they may be ready to sell right away at the price they asked for.

What is the cheapest month to buy a house? ›

Winter is usually the cheapest time of year to purchase a home. Sellers are often motivated, which automatically translates into an advantage to you. Most people suspend their listings from around Thanksgiving to the New Year because they assume buyers are scarce.

Is it still a good time to buy a house? ›

Despite the pessimism some consumers feel, 2022 could be a great year to buy a home. However, it's a good idea to act quickly while market conditions are still favorable. For instance, if you get your initial mortgage approval soon, you can lock in interest rates before they go any higher.

Is it a good time to buy home in cash? ›

Buying a home with cash can speed up the closing process and make your offer more appealing to sellers, which is a big plus in a hot seller's market. However, keep in mind that you're tying your money up in an illiquid asset, so it isn't always a good idea.

Can you ever own 100 of Shared Ownership? ›

​​For most shared ownership homes, the maximum share you can own is 100%. There are some exceptions. In some places, called 'designated protected areas', you may only be able to buy a share of up to 80%. Check with the landlord.

Is now a good time to buy a house Martin Lewis 2022? ›

Martin Lewis has issued a fresh warning to home buyers as rates are expected to rise 6% in 2023. The Money Saving Expert founder has advised that first time buyers should not be buying a house right now unless they are prepared and plan to live in the home for the long term future.

Is it hard to sell Shared Ownership? ›

If your housing association is able to find a buyer within the nomination period they have to sell your share, the process can often be quicker than selling on the open market. However, if you live in an area where Shared Ownership properties are less in demand, finding a buyer can be harder.

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