Blacksburg-Christiansburg, VA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Blacksburg-Christiansburg, VA, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses in the metropolitan statistical area. The HPI is a market-based measure of house prices and is designed to provide a timely indication of house price trends at the national, state, and metropolitan level. The HPI is based on data from Fannie Mae and Freddie Mac's monthly home purchase contracts and sales data from real estate brokers.

The HPI for Blacksburg-Christiansburg increased 0.8 percent from September to October 2020. On a year-over-year basis, prices were up 6.1 percent from October 2019 levels (see chart 1). The six-month moving average for the HPI was up 0.6 percent in October 2020 compared with September 2020 levels, while the 12-month moving average was up 5.7 percent over the same period (see chart 2).

Chart 1: FHFA House Price Index for Blacksburg-Christiansburg

Chart 2: Six Month Moving Average of FHFA House Price Index for Blacksburg-Christiansburg

Home equity refers to the portion of a home's value that is owned outright by the homeowner; it can be thought of as a homeowner's "stake" in their property. In other words, home equity represents how much of your house you would own if you were to sell it today and pay off your mortgage balance immediately.

Home prices in Blacksburg have been on an upward trend since bottoming out in 2011 (see chart 3). As of October 2020, the median sale price of a home in Blacksburg was $269,000, which is up 6.1% from one year ago and nearly 50% higher than the bottom reached during the housing crisis. Despite this strong rebound in prices, homeownership rates remain below pre-crisis levels as many households are still dealing with tight credit conditions and elevated levels of student debt.

Chart 3: Median Sale Price of Homes in Blacksurg