Dover, DE Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Dover, DE, 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 detached homes and condominiums. The Dover HPI includes data from Sussex County.

The FHFA began calculating and publishing the Dover HPI in September 2008. From September 2008 to December 2015, the Dover HPI increased by an average of 1.4% per year. In 2016, the Dover HPI increased by 6%, followed by increases of 5% in 2017 and 4% in 2018. As of December 2018, the index value was 241.6, which is 11% higher than its pre-recession peak of 217.3 in June 2007 and 46% higher than its trough of 165 in February 2011.

Home equity is the portion of a home's value that is owned outright by the homeowner; it is calculated as the difference between a home's appraised value and any outstanding mortgage debt on the property. Home prices are reflective of both home equity values and mortgage debt levels; as such, they can be used as leading indicators for future trends in each market segment.

In general, when home prices increase faster than incomes or inflation, it can signal that housing affordability may become an issue for some buyers down the road unless incomes rise at a similar pace to support these higher prices (or unless mortgage credit becomes more readily available). Additionally, if home prices appreciate too quickly relative to incomes and other economic fundamentals (such as job growth), this could eventually lead to unsustainable price levels and a potential market correction later on down the road – something that would obviously be harmful for both homeowners and buyers alike who enter into transactions during these periods of time just before a potential market downturn hits .