Lansing-East Lansing, MI Federal Housing Finance Agency Home Price Index (FHFA HPI)

In the Lansing-East Lansing, MI, Federal Housing Finance Agency (FHFA) house price index for the fourth quarter of 2019, home equity and home prices continued to rise. Home equity increased by $17.3 billion from the previous quarter to a total of $2.15 trillion. This is an increase of 8.6% from the fourth quarter of 2018. Home prices in the area increased by 1.4% during the same time period.

The FHFA house price index is a measure of changes in single-family home prices in select U.S. cities as determined by sales price data from Fannie Mae and Freddie Mac conforming loans purchased by or securitized by those two entities. The index covers repeat sales transactions on properties that have had at least two arms-length transactions since January 1975 and are located within one of the 381 core based statistical areas defined by the Office of Management and Budget as of June 30, 2005 (Lansing-East Lansing is located within CBSA number 16980). The FHFA HPI value for a given CBSA represents an estimate of median home price changes in that area; it does not represent changes in any particular property's value nor does it account for differences in quality or size among homes sold during a given period (e.g., starter homes versus luxury homes).

The FHFA house price index can be useful for understanding broad trends in home prices across select U.S cities, but it should not be used as a tool for valuing any particular property nor should it be used to make investment decisions about purchasing or selling real estate."