Lima, OH Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Lima, OH, Federal Housing Finance Agency (FHFA) house price index (HPI) showed that home prices in the area increased by 0.4% from October to November 2017. This is the fourth consecutive month of positive growth for the Lima HPI. The November 2017 HPI value of 153.48 is 8.5% higher than the post-recession low of 141.51 set in March 2011, but remains 12.2% below the pre-recession peak of 173.84 set in September 2005.

The FHFA HPI is a weighted, repeat-sales index measuring average price changes in U.S. single-family homes with mortgages backed by Fannie Mae or Freddie Mac from January 1975 to present day. The HPI value for any given month represents the change in average home prices between that month and January 2000, adjusted for inflation using the Consumer Price Index (CPI). For example, a value of 153 means that home prices have increased an average of 53% since January 2000 after adjusting for inflation (153 – 100 = 53).

Home equity is the portion of a homeowner’s property that is free and clear of any liens or claims against it – in other words, it’s the market value of a property minus any outstanding mortgage debt on it. As home prices rise, so does home equity; as home prices fall, so does home equity. In November 2017, homeowners with mortgages had an average equity stake of 40%, up from 39% in October and 38% one year ago.* This increase in equity stake is due to both rising home values and declining mortgage balances (as homeowners continue to pay down their loans).

*Note: The FHFA HPI only includes properties with conforming loans; jumbo loans are not included