Denver-Aurora-Lakewood, CO Federal Housing Finance Agency Home Price Index (FHFA HPI)

In the Denver-Aurora-Lakewood, CO, Federal Housing Finance Agency (FHFA) house price index (HPI), home equity is calculated as the difference between the property's value and the outstanding balance of all loans secured by the property. Home prices are measured by taking the weighted average of sales prices of properties with mortgages that have been acquired in arms-length transactions.

As of September 2020, the Denver-Aurora-Lakewood FHFA HPI was 251.48, meaning that home prices in the area had increased by 251.48% since January 2000. The average home in the area was worth $451,752 as of September 2020. The median home value in September 2020 was $385,000, meaning that half of all homes in the area were worth more than this amount and half were worth less.

The average homeowner in Denver-Aurora-Lakewood had $164,752 in home equity as of September 2020. This figure represents an increase of $64,752 from September 2019 when the average homeowner had $100,000 in home equity. The median homeowner had $75,000 in home equity as of September 2020 which is an increase from $50,000 one year prior. Homeowners with a mortgage had an average loan balance of $287,200 as of September 2020 while those without a mortgage averaged $68,552 in home equity.

The rise in house prices has caused many to become concerned about another housing bubble; however it is important to remember that there are several key differences between now and during the last housing market crash. One major difference is that lending standards are much stricter now than they were during the subprime mortgage crisis and borrowers are required to put down larger down payments. In addition, most loans being originated today are fixed rate rather than adjustable rate mortgages which means that payments will not increase if interest rates go up like they did during last housing market crash