Davenport-Moline-Rock Island, IA-IL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Davenport-Moline-Rock Island, IA-IL, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses in the metropolitan statistical area. The HPI is a broad measure of the movement of single-family house prices and covers both new and existing houses.

The FHFA HPI for Davenport-Moline-Rock Island was 199.7 in December 2020, up 1.2 percent from November and up 7.0 percent from December 2019. The December 2020 increase marks the fourth consecutive month of positive year-over-year growth in the Davenport metro HPI and the largest annual increase since August 2014 when home prices were rising rapidly during the housing market recovery.

Home equity is the portion of a property's value that is owned outright by the homeowner rather than being held as collateral by a lender such as a mortgage lender. Homeowners with mortgages typically have much less home equity than those who own their homes outright because they have borrowed against their property's value using their home as collateral for their loan.

In general, when home prices rise, homeowners' equity increases along with it because their property has become more valuable. However, this relationship isn't always linear; sometimes home prices will increase while homeowners' equity decreases, or vice versa. This can happen when homeowners take out second mortgages or other loans against their equity even as their property values are increasing.

The FHFA HPI for Davenport shows that home prices have been on an upward trend over the past year, which has likely led to increased home equity for many homeowners in the area. This trend is expected to continue in 2021 as demand for housing remains high and inventory levels remain low relative to historical norms