Cumberland, MD-WV Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Cumberland, MD-WV, 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 HPI covers single-family properties that have been sold at least twice since January 1975.

In the Cumberland metro area, home prices increased by 1.4% from the first quarter of 2019 to the first quarter of 2020. This is slightly below the national rate of home price growth, which was 1.6% over the same time period. Despite this slower rate of growth, home prices in Cumberland are still near their all-time high set in the fourth quarter of 2019.

The main driver of home price growth in Cumberland has been an increase in demand for housing. This demand has been driven by strong economic and population growth in the metro area. Since 2010, Cumberland's population has grown by 5%, while employment has grown by 11%. This strong economic and population growth has led to an increase in demand for housing, which has put upward pressure on home prices.

Looking forward, it is expected that home prices will continue to rise at a moderate pace in Cumberland as demand for housing remains strong. However, there is some risk that rising mortgage rates could put a damper on price growth as affordability becomes more of an issue for buyers.