Louisville/Jefferson County, KY-IN Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Louisville/Jefferson County, KY-IN, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses in the metropolitan statistical area. The index was created in 1990 and covers the entire U.S., including Puerto Rico and the Virgin Islands.

As of December 2020, the HPI for Louisville/Jefferson County was 176.8, down 0.2% from November but up 2% from December 2019. From its peak in September 2005 to its trough in March 2011, the HPI for Louisville/Jefferson County declined by 27%. As of December 2020, prices were still 15% below their pre-recession peak and had recovered just over half of their value lost during the downturn.

Home equity is the portion of a home's value that is owned outright by the homeowner. In other words, it's the difference between what your home is worth and how much you still owe on any mortgages or other loans that are secured by your home. Home equity can increase if you make improvements to your property or if home values rise in your neighborhood or region. Home equity can also decline if you take out a second mortgage or home equity loan against your property or if home values fall where you live.

As of September 2020, homeowners in Louisville/Jefferson County had an average of $74,000 in home equity, down from $84,000 a year earlier but up from $64,000 five years ago. The decrease from 2019 to 2020 was due primarily to declining home values in the area; however, rising home prices over the past five years have helped many homeowners regain some of the equity they lost during the housing market crash and ensuing recession.