State College, PA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Federal Housing Finance Agency (FHFA) House Price Index for State College, PA was released on March 31, 2016. The index showed that home prices in the area increased by 0.8% from the previous quarter, and by 2.7% from the same quarter a year ago. This is the fourth consecutive quarter of positive growth for home prices in State College, and marks a continued recovery from the housing market crash of 2008.

According to the FHFA, the increase in home prices is due in part to strong demand from buyers and limited supply of homes for sale. Low interest rates and rising incomes are also contributing factors. The median sales price of a home in State College is now $219,000, up from $214,000 last quarter and $213,000 a year ago.

With home prices on the rise, many homeowners are seeing an increase in their home equity. Home equity is the portion of a property's value that is owned outright by the homeowner; it can be used as collateral for loans or lines of credit, or it can be cashed out through a refinance or home equity loan.

As of March 2016, the average homeowner in State College had $151,000 in equity, up from $148,000 last quarter and $145,000 a year ago. This represents an increase of 2% from last quarter and 4% from a year ago. Homeowners with more equity are more likely to be able to sell their homes at a profit if they choose to do so; they also have more options if they need to borrow money against their property value.

The FHFA House Price Index is just one way to measure changes in home values; another common method is through appraisals conducted by licensed appraisers hired by buyers or sellers during real estate transactions. In general, appraisals tend to be slightly lower than market value estimates like those provided by the FHFA index; however, both methods can provide useful information about trends in local housing markets