Seattle-Bellevue-Kent, WA (MSAD) Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Seattle-Bellevue-Kent, WA Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses with conforming loan amounts. The HPI covers the nine county Seattle- Bellevue-Kent, WA metropolitan area and is a valuable tool for tracking house price trends at the regional level.

As of December 2020, the FHFA HPI for the Seattle metro area was 275.3, up 7.4% from December 2019. This represents an acceleration in annual growth from the 5.9% increase seen in 2019. Home prices in the Seattle metro have now recovered to their pre-recession peak set in 2007 and are currently at all-time highs.

There are several factors driving strong home price growth in the Seattle metro area. The region's strong job market and population growth continue to underpin demand for housing. Additionally, low mortgage rates are making it easier for buyers to afford a home purchase. Lastly, there is limited supply of homes available for sale, which is pushing prices higher as buyers compete for available properties.

Looking ahead, it is expected that home prices will continue to rise at a healthy pace in 2021 as these underlying drivers remain in place. However, rising prices may start to put some pressure on affordability and could eventually lead to more moderate price growth later in the year as some buyers are priced out of the market or choose to delay their purchase until conditions improve.