Charlotte-Concord-Gastonia, NC-SC Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Charlotte-Concord-Gastonia, NC-SC, 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 Charlotte metropolitan area. The HPI is based on data from Fannie Mae and Freddie Mac's conventional, conforming mortgage purchases.

The HPI for the Charlotte metro area increased by 3.9 percent from the first quarter of 2019 to the first quarter of 2020. This was slightly higher than the national rate of 3.8 percent and well above the rate for North Carolina as a whole, which was 2.7 percent.

Home prices in the Charlotte metro area have been rising steadily for several years now, although there have been some ups and downs along the way. The biggest increases have been seen in Mecklenburg County, where prices are now more than 20 percent higher than they were just five years ago. Prices in Gaston County have also risen sharply, although not quite as much as in Mecklenburg County.

There are a number of factors that have contributed to rising home prices in the Charlotte metro area. One is population growth; since 2010, the population of Mecklenburg County has grown by more than 10 percent, while the population of Gaston County has grown by more than 5 percent. This increase in population has led to increased demand for housing, which has helped drive up prices.

Another factor that has contributed to rising home prices is low interest rates; since early 2019, mortgage rates have been at or near historic lows. This has made it easier for people to buy homes, which has also helped drive up prices.

Finally, there is limited supply of housing in the Charlotte metro area; according to Realtor data, there were just over 4500 homes available for sale in Mecklenburg County at the end of March 2020, down from nearly 6000 at the same time last year. This decrease in supply combined with increased demand from buyers has put upward pressure on prices.

Looking ahead, it seems likely that home prices will continue to rise in the Charlotte metro area as long as population growth continues and interest rates remain low