Allentown-Bethlehem-Easton, PA-NJ Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Allentown-Bethlehem-Easton, PA-NJ, Federal Housing Finance Agency house price index is a measure of the change in home prices in the Allentown-Bethlehem-Easton metropolitan area. The index is based on data from Fannie Mae and Freddie Mac, which purchase mortgages from lenders and securitize them into mortgage-backed securities. The index covers single-family homes with conventional mortgages that have been sold or refinanced in the metro area.

Home prices in the Allentown metro area have been rising steadily since 2012. The index reached a peak of 248.6 in December 2017, before dipping slightly to 246.8 in January 2018. Despite this slight dip, home prices are still up significantly from their pre-recession levels. In fact, the Allentown metro area has experienced some of the strongest price growth in the country over the past few years.

There are several factors driving this strong price growth. First, job growth in the region has been strong since 2014, which has led to more people moving to the area and increased demand for housing. Second, interest rates remain at historically low levels, making it cheaper for people to finance a home purchase or refinance their existing mortgage. Finally, there is limited supply of homes available for sale relative to demand, which has put upward pressure on prices.

Looking forward, it is unclear how long this strong price growth will continue. If interest rates rise or job growth slows down significantly, then we could see a slowdown in price appreciation. However, as long as these trends remain favorable, it is likely that we will continue to see healthy gains in home values across the Allentown metro area