Corpus Christi, TX Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Corpus Christi, TX, 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 was created to provide a more timely and accurate measure of house price trends than other existing indices because it captures data on transactions as they occur.

The Corpus Christi HPI value for December 2020 was 195.4, which is 4.9% higher than the December 2019 value of 185.7 and 10.0% higher than the December 2018 value of 176.8 (not seasonally adjusted). This represents the fourth consecutive month of year-over-year increases in the Corpus Christi HPI and the ninth consecutive month of increases when compared to two years earlier. The year-over-year increase in December 2020 was driven by an increase in both home prices and home equity values in Corpus Christi.

Home prices in Corpus Christi increased at a faster pace than home prices nationwide over the past year. The median sales price of a home in Corpus Christi increased 5.3% from $194,000 in December 2019 to $204,000 in December 2020 (not seasonally adjusted), while the national median sales price increased 4.0% over the same period from $274,600 to $285,700 (not seasonally adjusted). Home prices have been rising steadily in Corpus Christi since bottoming out at $179,000 in February 2017 and are now 11.4% above that level. Despite this recent run-up in prices, homes remain affordable relative to both historical norms and other markets across Texas; the median sales price is still 14.2% below its peak level reached during the housing bubble last decade and is 8.6% below the statewide median sales price of $221,000 as of December 2020 (not seasonally adjusted).

Meanwhile, home equity values have also been rising steadily across Texas since bottoming out at negative 20% equity share statewide during 2Q 2012; homeowners with a mortgage now have an average equity stake of 50%, up from 46% one year ago according to CoreLogic’s Equity Report for 3Q 2020 released last month . In Corpus Christi specifically, homeowners with a mortgage had an average equity stake of 53%, up from 49% one year ago and 47% two years ago according to CoreLogic’s report . This increase in homeowner equity has helped fuel demand for housing as potential buyers who were previously unable to afford a down payment can now tap into their home equity for a down payment . It has also helped support house prices by making it easier for current homeowners to sell their homes without having to bring money to closing .

Looking ahead, we expect continued increases in both home prices and homeowner equity across Texas as job growth remains strong and interest rates stay low . However , affordability constraints could start to become more prevalent if either incomes fail to keep pace with rising home prices or mortgage rates begin trending upwards from their current historically low levels .