FMHPI house price index change 2010-2023

The Freddie Mac House Price Index (FMHPI) reported that home prices in the United States rose by 17.8 percent in 2021. Home prices measured the highest increase as a result of the the robust housing demand and record low mortgage rates in 2020 and 2021. According to the forecast, growth is expected to slow down and fall to five percent in 2023.

What is the value of your home?

The FMHPI reported that the value of single-family housing in the United States increased for seven consecutive years between 2012 and 2018 – house prices have not depreciated since falling by 3.1 percent in 2011. The median sales price of existing single-family homes reached roughly 391,000 U.S. dollars in April 2022, increasing by around 50,000 U.S. dollars on the previous year. The median sales price of new single-family homes followed a similar trend, soaring to roughly 451,000 U.S. dollars.

Understanding the real estate market

There are many factors that can influence the decision of potential homebuyers. Household income and house prices are among the most obvious – the consumer is in a powerful situation when their income increases and house prices decrease. Mortgage rates can also play an important role: when they increase, the idea of buying a home becomes less appealing. The rates on a 30-year conventional mortgage in the United States steadily decreased in recent years, meaning monthly interest repayments have also decreased.