Lubbock, TX Federal Housing Finance Agency Home Price Index (FHFA HPI)

In the Lubbock, TX, Federal Housing Finance Agency (FHFA) house price index for the fourth quarter of 2019, the home equity and home prices both increased from the previous quarter. The home equity index rose from 63.1 to 63.4, while the home price index increased from 225.6 to 226.3.

The rise in home equity is due to an increase in home prices and a decrease in mortgage debt outstanding. The average U.S. homeowner gained $913 in equity over the past year, while their counterparts in Lubbock saw an even larger increase of $1,023. Homeowners in Lubbock now have an average of $63,400 in equity, up from $62,377 last quarter and $61,377 a year ago.

The increase in home prices is being driven by strong economic fundamentals including population growth, job creation and low interest rates. The median sales price of a home in Lubbock was $196,000 in the fourth quarter of 2019 – up 5% from last year and 11% higher than two years ago ($176,000). With incomes also rising and more people moving to Lubbock (the population grew by 2% last year), we expect prices to continue to rise at a healthy pace over the next few years as demand continues to outpace supply