Canton-Massillon, OH Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Canton-Massillon, OH, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The index covers single-family homes and condominiums. The HPI value for a particular geographic area is the average of all HPI values for individual properties located within that area.

As of the fourth quarter of 2019, the FHFA HPI for Canton-Massillon was 176.4, down 0.1 percent from the third quarter but up 2.2 percent from a year earlier. From its peak in the second quarter of 2006 to its trough in the first quarter of 2011, Canton-Massillon's HPI declined by 27.7 percent; since then it has recovered by 43.3 percent through 2019 Q4 (see chart 1).

Chart 1: FHFA House Price Index for Canton-Massillon

The U.S. Census Bureau's American Community Survey (ACS) provides information on median home values at the metro level. In 2018, the median home value in Canton-Massillon was $131,100, an increase of 5 percent from 2017 levels ($124,700). However, this is still below pre-recession levels; in 2007, prior to the start of the recession, median home values in Canton- Massillon were $145,000 (see chart 2).

Chart 2: Median Home Values in Canton - Massillon

There are several reasons why home prices have not yet fully recovered in Canton - Massillon despite strong economic growth in recent years. First, there has been very little new construction relative to other parts of Ohio andthe nation as a whole since the end ofthe recessionary period; this lackof new construction has helped to keep prices elevated as demand for existing homes has outstripped supply . Second , many potential buyers remain cautious about taking on too much debt given concerns about job security and wage growth . Third , student loan debt continues to be a major burden for many young adults who would otherwise be buying their first homes . And finally , while interest rates remain low by historical standards , they have risen somewhat since hitting rock bottom levels in late 2016 , making it more expensive to finance a purchase . All these factors considered , it's not surprising that home prices have not yet returned to their pre - recession peaks even though economic conditions have improved significantly overthe past few years .