FMHPI house price index change 2010-2022

The Freddie Mac House Price Index (FMHPI) reported that home prices in the United States rose by 11.3 percent in 2020. Home prices measured the highest increase as a result of the the robust housing demand and record low mortgage rates in 2020. According to the forecast, growth is expected to slow down and fall to 4.4 percent in 2022.

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 275,000 U.S. dollars in 2019, increasing by around 10,000 U.S. dollars on the previous year. However, the median sales price of new single-family homes decreased by close to 2,000 U.S. dollars between 2018 and 2019.

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.