Midland, MI Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Midland, MI, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The index covers single-family homes and condominiums. The HPI value for a particular geographic area is the weighted sum of transaction prices on properties located within that area, divided by the number of transactions.

The HPI for Midland, MI was 199.8 in December 2020, up 0.4% from November and up 7.0% from December 2019. This represents an increase in home equity of $7,000 over the past year for the typical homeowner in Midland. Home prices in Midland have been rising steadily since bottoming out in 2011 following the housing market crash and recession. However, they remain well below their pre-crash peak of 225.3 set in June 2006.

Despite the recent increases in home prices, affordability remains a challenge for many potential buyers in Midland. According to RealtyTrac’s Affordability Index, only 36% of households could afford to purchase a median-priced home in Midland as of Q3 2020 – down from 38% a year earlier and well below the historical average of 44%. Rising home prices and interest rates are making it increasingly difficult for buyers to enter the market or trade up to a larger home.

As we head into 2021, it will be interesting to see if home prices continue to rise at their current pace or if affordability constraints start to put a damper on demand and lead to more moderate price growth.