Hot Springs, AR Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Hot Springs, AR, 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 covers single-family homes nationwide and is available monthly from January 1991 through the present.

In 2019, the HPI for Hot Springs was 176.6, up from 175.7 in 2018. This represents a 0.6% increase in home prices over the past year. The HPI for Arkansas as a whole was 172.1 in 2019, up from 171.3 in 2018 – meaning that Hot Springs home prices have increased at a slightly faster pace than the state overall.

The FHFA HPI is calculated using data from Freddie Mac and Fannie Mae’s Home Price Index (HPI) database; it covers transactions on one-to-four unit properties with conventional mortgages purchased or securitized by Freddie Mac or Fannie Mae from January 1975 onward.

The most recent data shows that home prices in Hot Springs are still rising, albeit at a slower pace than earlier in the decade – which isn’t surprising given that we’re now 10 years into an expansionary phase of the business cycle and many other markets around the country are starting to see more moderate price growth as well.

Looking ahead, it will be interesting to see howHot Springs’ housing market performs over the next few years as we enter what is typically considered the “late innings” of an economic expansion. If history is any guide, we could see some moderation in price growth as buyers become more cautious and inventory levels start to rise relative to demand – but only time will tell how this particular market plays out