Bloomington, IL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Bloomington, IL, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses with mortgages backed by Fannie Mae or Freddie Mac. The HPI value for a particular quarter represents the change in prices from the same quarter of the previous year. For example, if the HPI for Bloomington, IL was 120.0 in Q1 2020, that means prices in Q1 2020 were 20% higher than they were in Q1 2019.

The FHFA HPI is widely used as a measure of home equity and home prices. Home equity is the portion of a property's value that is owned outright by the homeowner; it can be thought of as the "equity stake" that a homeowner has in their property. Home prices are determined by many factors, including local market conditions, economic conditions, and housing supply and demand. The FHFA HPI provides a useful measure of trends in home prices and home equity over time.

In recent years, both home prices and home equity have been rising steadily in Bloomington, IL. Between Q1 2016 and Q1 2020, the FHFA HPI for Bloomington rose from 103.3 to 120.0; this represents an increase of more than 16%. During this same time period, average household incomes in Bloomington rose by about 11%. This means that homes have become more affordable relative to incomes over this time period; however, they are still less affordable than they were prior to the Great Recession of 2008-2009 when median household incomes were higher and home prices were lower (the FHFA HPI for Bloomington was 95.6 in Q1 2008).

The rise in both home prices and home equity has been driven by strong demand for housing and limited supply of properties for sale relative to that demand (a condition known as "seller's market"). In addition, historically low interest rates have made financing a purchase more affordable for buyers; this has also helped to drive up prices.

Looking forward, it is unclear how long these trends will continue or what might cause them to change direction. If interest rates rise or economic conditions deteriorate significantly (e.g., due to another recession), affordability could become an issue once again and put downward pressure on prices; on the other hand, if job growth continues at its current pace or accelerates further ,demand for housing could remain strong enough to support continued price increases even if interest rates rise modestly . Only time will tell how these various factors will play out and what effect they will have on house prices in Bloomington ,IL .