Cambridge-Newton-Framingham, MA (MSAD) Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Cambridge-Newton-Framingham, MA Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family properties in the metro area. The HPI is a broad measure of the movement of single-family house prices and covers both resale and new construction.

The HPI value for the Cambridge-Newton-Framingham, MA metro area was 238.847 in 2020 Q1. This value represents a quarterly change of 1.9 percent and an annual change of 4.7 percent. The 2020 Q1 value is also 0.6 percent higher than the prerecession peak set in 2006 Q3.

As of 2020 Q1, home equity in the Cambridge-Newton-Framingham metro area increased to $231 billion, or an increase of $11 billion from 2019 Q4. Home equity as a percentage of property value increased to 37 percent from 36 percent last quarter but remains below the historical average of 45 percent seen prior to the housing crisis.

Home prices in the Cambridge-Newton-Framingham metro area have been on the rise since bottoming out in 2012 and have now regained all their lost ground from the housing crisis. Prices are being driven by strong demand from buyers as well as limited supply of homes for sale which has resulted in bidding wars and escalating prices in many markets across the country.

The combination of rising home prices and increasing home equity has been a boon for homeowners in the Cambridge-Newton-Framingham metro area as they have seen their net worth increase by over $100 billion since hitting bottom during the housing crisis. For many homeowners, this increase in equity has provided them with much needed financial security during these uncertain times while also giving them some extra cash to spend or invest as they see fit