Harrisburg-Carlisle, PA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Harrisburg-Carlisle, PA, 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, townhomes, condominiums and co-ops. The Harrisburg-Carlisle HPI includes data from Allegheny, Cumberland, Dauphin and Perry counties.

Between 2000 and 2006, home prices in the Harrisburg-Carlisle area more than doubled. The median home price rose from $91,000 in 2000 to $193,000 in 2006. During the same period, the national median home price increased by less than 50%.

The increase in Harrisburg-Carlisle home prices was driven by a number of factors. First, there was strong population growth in the region. Between 2000 and 2010, the population of Cumberland County grew by 11%, while the populations of Dauphin and Perry counties grew by 9% and 8%, respectively. This population growth created more demand for housing which helped drive up prices.

Second, low interest rates made it cheaper for people to borrow money to buy a house. The average 30-year fixed mortgage rate fell from 8% in 2000 to 6% in 2006. This made it easier for people to qualify for a loan and also allowed them to afford a more expensive house than they could have otherwise afforded.

Third, there was an influx of investment money into real estate during this time period as investors were looking for ways to make money outside of the stock market which had become increasingly volatile. This investment money helped drive up prices even further as investors were willing to pay more for properties than traditional home buyers were willing to pay.

All of these factors combined led to a sharp increase in home prices in the Harrisburg-Carlisle area between 2000 and 2006. However, this increase was not sustainable as it was not based on fundamentals such as income growth or rental demand; rather it was driven primarily by speculation which eventually led to a housing bubble that burst in 2007/2008 causing prices to plummet back down closer to their fundamental levels .