Grand Junction, CO Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Grand Junction, CO, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses with mortgages backed by Fannie Mae or Freddie Mac. The HPI value for any given month is equal to the average of that month's sales prices for all homes in the sample, divided by the average of the last month's sales prices for all homes in the sample.

The HPI began in January 1975 and covers both purchase mortgages and refinance mortgages. The HPI covers single-family properties only; condominiums and cooperatives are excluded. The HPI is updated monthly and is available both seasonally adjusted and not seasonally adjusted.

In December 2020, the FHFA reported that the Grand Junction, CO HPI was up 3.2% from December 2019. This marks the fourth consecutive month of year-over-year price increases in Grand Junction and brings the city's 2020 annual growth rate to 5.8%. This is well above the national rate of 4.0% and ranks Grand Junction as one of the top performing housing markets in the country.

There are several factors driving strong home price growth in Grand Junction: low interest rates, limited supply of available homes, and strong population growth.

Grand Junction's population has been growing rapidly in recent years due to an influx of retirees from California fleeing high taxes and cost of living, as well as younger people moving to take advantage of outdoor recreation opportunities and a lower cost of living than nearby resort towns like Aspen or Vail. This population growth has led to increased demand for housing which has put upward pressure on prices.

Interest rates have also played a role in boosting home prices as they remain at historically low levels making it cheaper to finance a purchase or refinance an existing mortgage. Low interest rates make it easier for buyers to afford more expensive homes and also encourage existing homeowners to trade up to larger or nicer properties since they can do so at a lower monthly cost than would have been possible when rates were higher.

Finally, there is currently a limited supply of available homes on the market which is exacerbating price increases caused by increased demand from buyers. The combination of these factors has resulted in strong home price appreciation over recent years making Grand Junction one of Colorado's hottest housing markets