Albany-Lebanon, OR Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Albany-Lebanon, OR, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The index covers single-family homes and condominiums. The Albany-Lebanon HPI includes data from counties in Oregon and Washington.

Between 2000 and 2006, home prices in the Albany-Lebanon HPI rose rapidly, increasing by nearly 80%. However, since the start of the housing market downturn in 2007, prices have fallen sharply, declining by more than 30% from their peak. As of Q4 2015, prices remain well below their pre-recession levels.

The sharp decline in home prices has had a significant impact on home equity levels in the region. Homeowners with mortgages have seen their equity levels shrink as their home values have declined. In some cases, homeowners owe more on their mortgage than their home is worth (known as being "underwater"). This can make it difficult to sell one's home or refinance at a lower rate.

The weak housing market has also made it difficult for potential buyers to purchase a home. Affordability constraints and tight credit conditions have kept many would-be buyers out of the market. As a result, demand for housing has remained relatively weak even as prices have fallen significantly. This has put downward pressure on prices and further eroded equity levels for existing homeowners.