Odessa, TX Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Odessa, TX, 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 was created in order to be a more timely measure of home price changes than other indices because it relies on data from mortgage transactions.

In general, the HPI is a broad measure of the movement of single-family house prices. The HPI covers all nine U.S. Census divisions and is provided both as a national index and as divisional indexes. The weights assigned to each transaction are based on the value of the property at the time of sale or refinancing and reflect both purchase financing and cash sales for single-family houses with conventional mortgages.

The FHFA House Price Index for Odessa, TX was released today for Q4 2020. The index showed that home prices in Odessa increased by 2% from Q3 2020 to Q4 2020, and increased by 10% from Q4 2019 to Q4 2020.

This is good news for homeowners in Odessa who have seen their home equity increase over the past year. Home equity is the portion of a homeowner's property that they own outright, free and clear of any liens or mortgages. As home prices increase, so does home equity.

The rise in home prices has been driven by low interest rates and strong demand from buyers who are looking for more space outside of urban areas during the pandemic. While there are concerns about how long this trend will continue, for now it appears that Odessa homeowners are benefiting from rising values.