Newark, NJ-PA (MSAD) Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Newark, NJ-PA 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 (MSA). The HPI value for any given quarter is equal to 100 if the average price of homes sold during that quarter was equal to the price of homes sold during the base period. A value greater than 100 indicates that prices have increased since the base period, while a value less than 100 indicates that prices have decreased since the base period.

The FHFA HPI for Newark, NJ-PA was 102.7 as of Q1 2020, meaning that home prices in Newark have increased by 2.7% since Q1 2014 - when home prices were at their lowest point following the housing market crash and recession. Home prices in Newark reached their peak prior to the crash in Q3 2005, at a value of 138.9 on the FHFA HPI. This means that home prices in Newark are currently about 26% below their pre-crash peak.

The recent rebound in home prices seen across much of the country has been driven by strong demand from buyers and limited supply of available homes for sale. In Newark, this has resulted in bidding wars and rapidly rising home prices over the past few years. However, with interest rates remaining at historically low levels and more people working from home due to COVID-19 pandemic, there is still strong demand for housing in Newark which is likely to keep pushing prices higher in the near term.