Dalton, GA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Dalton, GA, 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 in order to be a more accurate measure of house price changes than other methods, such as the Case-Shiller Index.

The FHFA HPI for Dalton, GA was 154.6 in December 2020, up from 153.7 in November 2020 and up from 150.3 in December 2019. This represents a 2.1% increase in house prices over the past year (2020 vs 2019). Home equity is the difference between the value of a property and any outstanding mortgage debt on the property. In December 2020, the median home equity for all properties with a mortgage was $174,900, up from $170,000 in November 2020 and up from $164,200 in December 2019. This represents an increase of 4.9% over the past year (2020 vs 2019).

There are several factors that have contributed to the increase in home prices and home equity values over the past year:

1) Low interest rates: Interest rates have remained at historically low levels throughout 2020 due to actions taken by the Federal Reserve to support the economy during the COVID-19 pandemic recession. Low interest rates make it cheaper to borrow money for a mortgage loan, which increases demand for homes and drives prices higher.

2) Limited supply of homes for sale: The number of homes available for sale has been trending downward for several years now due to a combination of factors including declining construction activity during and after the Great Recession as well as strong demand from buyers who are taking advantage of low interest rates. This limited supply has helped push prices upward as buyers compete for available properties.