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

The Huntsville, AL, 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 with mortgages owned or securitized by Fannie Mae or Freddie Mac.

The HPI value for Huntsville was 176.3 in 2020Q1, up 1.0% from 173.8 in 2019Q4 and up 2.6% from 171.5 in 2020Q1. The HPI for the U.S., which includes all states covered by the FHFA HPI program as well as the District of Columbia, was 241.7 in 2020Q1, up 0.9% from 239.6 in 2019Q4 and up 3% from 234 in 2020Q1

In Huntsville, home prices have increased steadily over the past few years despite some volatility quarter-to-quarter. In general, prices have trended upwards since bottoming out in early 2012 following the housing market crash and Great Recession.

There are a number of factors that have contributed to rising home prices in Huntsville over the past several years:

• Low interest rates: Mortgage rates remain near historic lows, making it an attractive time to buy a home;

• Strong job market: The unemployment rate in Huntsville is below the national average and has been steadily declining since 2010;

• Limited supply of homes: The number of homes available for sale remains tight relative to buyer demand;

• Population growth: More people moving to Huntsville means more demand for housing;

Rising home prices are good news for homeowners with equity in their property – they can see their investment grow over time – but they can make it difficult for first-time buyers and those looking to trade up to a larger home afford a place of their own