Bend, OR Federal Housing Finance Agency Home Price Index (FHFA HPI)

In the Bend, OR, Federal Housing Finance Agency (FHFA) house price index, home equity and home prices are both represented. Home equity is the portion of a property's value that is owned by the homeowner, while home prices represent the total value of a property.

The FHFA house price index is based on data from Freddie Mac and Fannie Mae, which purchase mortgages from lenders and package them into securities. The index covers single-family properties with mortgages that have been securitized by Freddie Mac or Fannie Mae.

In Bend, OR, the FHFA house price index was at its peak in December 2005, at 248.9. Since then, it has declined steadily, reaching its lowest point in December 2011, at 168.3. In December 2016, the index had recovered somewhat to 185.0.

Home equity in Bend peaked in June 2006 at 71.4%. It then declined steadily until it reached its lowest point in December 2011 at 39.6%. In December 2016, home equity had recovered somewhat to 46.8%.

The relationship between home equity and home prices can be seen clearly in the FHFA house price index for Bend. When home prices are high relative to homeowners' equity stake in their property (as was the case in December 2005), there is less incentive for homeowners to sell because they would not be able to recoup their investment through sale proceeds alone. On the other hand, when homes are more affordable relative to homeowners' equity stake (as was the case in December 2011), there is more incentive for homeowners to sell as they would be able to pocket a larger portion of their investment through sale proceeds than if they waited until prices increased again later on down the road