Miami-Miami Beach-Kendall, FL (MSAD) Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Miami-Miami Beach-Kendall, FL , Federal Housing Finance Agency house price index is a measure of the change in home prices in the Miami metropolitan area. The index is based on data from Fannie Mae and Freddie Mac, which purchase mortgages from lenders and securitize them into mortgage-backed securities. The index covers single-family homes with conventional mortgages that have been sold or refinanced within the past six months.

Since its inception in January 2000, the Miami house price index has risen steadily, with only a few small dips during the housing market crash of 2008 and the ensuing recession. However, prices have begun to rebound in recent years, and as of December 2016, the index stood at 205.3, up nearly 9% from its trough in early 2011.

There are several factors driving this increase in home prices in Miami. First, there is strong demand for housing in the area due to population growth and limited supply of available homes. This has led to bidding wars for properties, particularly in desirable neighborhoods like Coconut Grove and Coral Gables. Second, low interest rates make financing a purchase more affordable than it would be otherwise. And finally, many people are choosing to buy second homes or investment properties in Miami as a hedge against inflation or instability elsewhere.

As home prices continue to rise, it is becoming increasingly difficult for first-time buyers to enter the market. In addition, those who do purchase a home are often forced to take on larger mortgages than they would like or can afford. This could eventually lead to another housing market crash if interest rates rise or economic conditions deteriorate significantly. For now though, it appears that the Miami housing market is healthy and poised for continued growth