Bloomsburg-Berwick, PA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Bloomsburg-Berwick, PA, 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 the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). The HPI covers metropolitan areas and is available both nationally and for individual states.

As of the fourth quarter of 2019, the Bloomsburg-Berwick HPI was 176.6, down 0.1 percent from the previous quarter and up 1.2 percent from a year earlier. From its peak in the second quarter of 2006 to its trough in the first quarter of 2011, prices fell by 27.4 percent. Since then, prices have risen by 61.0 percent through 2019:Q4. The most recent data point shows that prices are now just 2.9 percent below their pre-crisis peak level set in 2006:Q2; this marks an important milestone in the housing market’s recovery from the crisis.

Home equity is simply defined as the portion of a home’s value that is owned outright by the homeowner; it is calculated as home value minus outstanding mortgage debt. In other words, it represents how much “skin in the game” a homeowner has in their property. Home equity can fluctuate up or down depending on changes in either home values or mortgage debt levels; when home values increase faster than mortgage debt levels, equity increases, while vice versa will lead to a decrease in equity levels.

In general terms, higher levels of home equity are associated with several key benefits for homeowners: first and foremost, it provides them with a larger “cushion” against potential financial difficulties such as job loss or unexpected repairs/maintenance costs; secondly, it gives them more options and flexibility when it comes to making future decisions about their homes (e.g., whether to sell or refinance); finally, all else being equal, higher levels of home equity also tend to lead to lower borrowing costs if/when homeowners do need to take out additional loans against their properties (e.g., for a home improvement project).

Looking at Bloomsburg-Berwick specifically, we see that as of 2019:Q4 there was an estimated $3 billion dollars worth of total home equity held by area homeowners – up slightly from $2.9 billion at 2018:Q4 but still well below pre-crisis peaks near $5 billion set back in 2006:Q2 just before prices began to tumble downwards during the housing market crash/financial crisis