Elgin, IL (MSAD) Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Elgin, IL 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 commonly used indices because it uses data on actual transactions rather than appraisals.

Between 2000 and 2006, home prices in the Elgin area increased by an average of 4.5% per year. This appreciation was driven by a number of factors, including low interest rates, strong economic growth, and limited supply of propeties relative to population and income growth. However, since 2006 Elgin's housing market has been stagnant, with prices falling by an average of 0.6% per year from 2006 to 2011. This is due largely to the collapse of the subprime mortgage market and the ensuing financial crisis which has made it difficult for many potential buyers to obtain financing.

As of 2011, the median home price in Elgin was $186,000 which is down from its peak of $193,000 in 2006. However, despite the recent decline in prices, homes in Elgin are still relatively expensive when compared to other parts of the country. For example, according to Zillow's Home Value Index, the median home value in the United States as a whole was just $148,000 as of December 2011.

One reason why homes in Elgin remain relatively expensive is because they tend to be larger than homes elsewhere in the country. According to data from the U.S Census Bureau's American Community Survey (ACS), the median size for a single-family home in Elgin is 1,988 square feet which is significantly larger than both the national average (1,500 square feet) and Illinois average (1