New York-Jersey City-White Plains, NY-NJ (MSAD) Federal Housing Finance Agency Home Price Index (FHFA HPI)

The New York-Jersey City-White Plains, NY-NJ 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 HPI is a broad measure of the movement of single-family house prices and covers both new and existing houses.

The FHFA HPI for the New York-Jersey City-White Plains, NY-NJ metro area was 199.4 in December 2020, up 1.2% from November 2020 and up 10.3% from December 2019.

Home equity is the portion of a home's value that is owned outright by the homeowner, free and clear of any liens or mortgages. In other words, it's the difference between what your home is currently worth and how much you still owe on any outstanding loans or mortgages against it.

As of December 2020, homeowners in the New York metro area had an average of $227,000 in home equity, up from $221,000 in November 2020 and $200,000 in December 2019. Homeowners in this metro area have seen their home equity increase by an average of $27,000 over the past year as home values have risen while mortgage debt has remained relatively flat.

The rise in home equity has been driven primarily by increases in home values as mortgage debt levels have remained relatively flat over the past year. The median sale price for a home in this metro area was $430,000 in December 2020, up 11% from December 2019 ($387,500). At the same time, mortgage rates have remained low by historical standards throughout 2020 – averaging 3.05% for a 30-year fixed rate loan as of December 2020 – helping to keep monthly mortgage payments affordable even as prices have increased.

With prices continuing to rise and interest rates expected to remain low throughout 2021 ( Freddie Mac is forecasting an average 30-year fixed rate mortgage rate of 3.3%), we expect to see further gains in home equity for homeowners across the metro area over the next 12 months."