Charleston, WV Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Charleston, WV, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index that measures average home price changes in the Charleston metropolitan area. The HPI is based on sales price information from Fannie Mae and Freddie Mac-acquired single-family properties in the Charleston metro area.

As of the fourth quarter of 2019, the HPI for the Charleston metro area was 176.7, up 4.1% from a year earlier. This increase was driven by strong home sales and limited inventory in the region.

Home prices in the Charleston metro area have been on the rise for several years, but they accelerated in 2019 due to strong demand and limited supply. The number of homes for sale in the region has declined steadily since 2015, while sales have increased steadily over that same period. This imbalance between buyers and sellers has put upward pressure on prices.

In addition to tight supply conditions, low mortgage rates have also helped to drive up home prices in recent years by making it more affordable for buyers to purchase a home. The average 30-year fixed mortgage rate was 3.9% in 2019, down from 4.3% in 2018 and 4.6% in 2017.

As we enter 2020, it is unclear how long these trends will continue or if there will be any major changes that could impact the housing market in Charleston or elsewhere around the country