Grand Island, NE Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Grand Island, NE, 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.

As of December 2020, the FHFA HPI for Grand Island was 176.6, up from 174.7 in November and 170.2 in October. This represents a 2.4% increase in house prices from December 2019 to December 2020.

There are several factors that have contributed to the increase in home prices in Grand Island over the past year. One factor is the low interest rate environment that we have been experiencing since early 2020. Low mortgage rates make it cheaper for buyers to purchase a home and also make it more attractive for people to refinance their existing mortgages into lower-rate loans. This increases demand for homes and puts upward pressure on prices. Another factor is limited supply of homes for sale relative to demand from buyers. This has been an issue throughout much of the country over the past year as many people have been hesitant to put their homes up for sale during the pandemic while others have taken advantage of low rates by purchasing investment properties or second homes. The combination of these two factors – strong demand and limited supply – has resulted in sustained increases in home prices across much of the country, including Grand Island