Panama City, FL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Panama City, FL, 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 with mortgages owned or securitized by Fannie Mae or Freddie Mac.

As of September 2020, the Panama City HPI was up 3.1% from a year ago and up 0.8% from the previous month. On a monthly basis, home prices have been rising since April 2020 but at a slower pace compared to earlier in the year. The annual rate of growth has moderated since hitting a peak of 7.2% in March 2020 but remains above the long-run average of 2.5%.

The moderation in home price growth is consistent with other housing market indicators such as sales of existing homes and starts of new homes, which have both slowed from their peaks earlier this year but remain above pre-pandemic levels. The slowdown is likely due to a combination of factors including higher mortgage rates, stricter lending standards, and ongoing supply constraints (especially for entry-level homes).

Despite the recent slowdown in price growth, home prices in Panama City are still well above their pre-pandemic levels and are likely to continue to rise in the near term as demand remains strong relative to supply. However, given the uncertain economic outlook and potential for further interest rate increases, future price gains are likely to be more modest than what we’ve seen over the past year or so.