Naples-Marco Island, FL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Naples-Marco Island, FL, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family properties in the area. The HPI is based on sales price information from Fannie Mae and Freddie Mac primary mortgage market surveys (PMMS), and includes data from more than 18,000 ZIP codes nationwide.

In the fourth quarter of 2020, the Naples-Marco Island HPI rose 4.8 percent from the fourth quarter of 2019. This was the largest annual increase since the fourth quarter of 2005, when the index rose 5.1 percent. Home prices in the Naples-Marco Island area have been rising steadily for several years now, but this latest increase is noteworthy because it comes at a time when many other parts of the country are seeing slower growth or even declines in home prices.

There are several factors that could be driving the strong housing market in Naples-Marco Island. One is that Florida has been one of the states most welcoming to out-of-state buyers during the pandemic, as people look to escape crowded cities and high taxes. Another is that retirees are increasingly choosing to relocate to Florida for its warm climate and low cost of living. And finally, investors are snapping up properties in Naples-Marco Island as vacation rentals, betting that tourism will rebound strongly once travel restrictions are lifted.

Whatever the reasons for its recent success, there's no doubt that the Naples-Marco Island housing market is currently red hot. If you're thinking about buying a home in the area, you'll need to be prepared to pay top dollar – but if you do so wisely, you could see your investment appreciate significantly over time.