Baltimore-Columbia-Towson, MD Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Baltimore-Columbia-Towson, MD, 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 HPI value for a particular geographic area is the weighted sum of transaction prices on properties located within that area, divided by the total number of transactions.

The HPI is one of several indices produced by FHFA and is published monthly. The HPI began in 1975 and covers all nine census divisions. The Baltimore-Columbia-Towson MSA became a separate index in 1991.

Between 2000 and 2006, home prices in the Baltimore metro area more than doubled. This was followed by a sharp decline during the housing market crash of 2007-2008, with prices bottoming out in 2009. Since then, prices have recovered somewhat, but remain below their pre-crash peak levels.

As of 2019 Q3, the HPI for the Baltimore metro area was 176.1 (1992=100), up slightly from 176.0 in Q2 and up 2% from 172.4 in Q3 2018. However, this is still below the peak value of 206 reached in Q2 2007 prior to the housing market crash.

The recent rebound in home prices has been driven largely by strong demand from buyers while supply remains relatively tight. Low mortgage rates and a strong job market are also supporting higher prices . However , affordability remains a challenge for many potential buyers , especially first - time buyers .

Despite these challenges , overall conditions appear to be favorable for continued price gains in the near term .