Scranton--Wilkes-Barre, PA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Scranton--Wilkes-Barre, PA, 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 and condominiums.

The HPI value for a particular geographic area is equal to 100 if the average home in that area sold for exactly $100,000 in the base period. A value of 120 means that homes in that area on average sold for 20 percent more than $100,000 during the base period; conversely, a value of 80 means homes sold for 20 percent less than $100,000 during the base period. The HPI values are calculated using data from home sales transactions and mortgage refinancings reported to Fannie Mae and Freddie Mac.

As of December 2020, the Scranton--Wilkes-Barre HPI was 131.7, meaning that home prices had increased by 31.7 percent since January 2000 when the HPI was set to 100.0. Home prices in Scranton--Wilkes-Barre peaked in September 2005 at 155.1 before declining during the housing market crash of 2006–2011. Prices began to recover in 2012 and have been rising steadily since then with only a few small dips along the way. As of December 2020, home prices were about 25 percent higher than their pre-crash peak but still about 11 percent below their long-term trend line (meaning they have not yet fully recovered from the crash).

There are several reasons why home prices have been rising so rapidly in Scranton--Wilkes-Barre over the past few years: strong economic growth, low interest rates, limited supply of available homes (especially at lower price points), and high demand from buyers (especially millennials and retirees). All of these factors are likely to continue driving up prices in 2021 and beyond unless there is a major economic downturn or interest rates rise significantly. This could make it difficult for first-time buyers or those with limited budgets to purchase a home in Scranton--Wilkes-Barre unless they are willing to pay well above asking price or buy a fixer upper that needs significant repairs/updates