Gadsden, AL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Gadsden, AL 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 (MSA). The HPI value for any given quarter is equal to the sum of the weighted prices of all homes sold in that quarter, divided by the total number of homes sold. The weights are derived from a rolling, four-quarter window.

In general, home prices in the Gadsden MSA have been on the rise since 2013. However, there was a slight dip in prices between Q4 2015 and Q1 2016. Since then, prices have been steadily increasing. As of Q3 2019, the HPI value was 160.8, which is up 5% from Q3 2018 and up nearly 17% from the low point in early 2016.

There are several factors that have contributed to rising home prices in Gadsden over the past few years. One is population growth: between 2010 and 2018, the population of Etowah County (which contains Gadsden) grew by nearly 6%. This increase in population has led to increased demand for housing and higher prices. Another factor is low interest rates: mortgage rates have remained at historically low levels since 2016, making it easier for buyers to afford a home purchase. Additionally, limited supply has also played a role: there were just 1,290 active listings on the market as of October 2019 – down nearly 20% from October 2018 – leading to more competition among buyers and driving up prices further.

Looking ahead, it seems likely that home prices will continue to rise in Gadsden as long as these underlying trends remain intact. However, if interest rates begin to rise or job growth slows down significantly, that could put a damper on price increases.