Terre Haute, IN Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Terre Haute, IN, 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 Terre Haute HPI includes data from 97 metropolitan statistical areas (MSAs).

Between 2000 and 2006, home prices in the Terre Haute HPI rose rapidly, increasing by nearly 60%. However, since 2007 prices have fallen sharply, declining by over 30%. In the first quarter of 2020, prices were down 3.4% from a year earlier.

The sharp decline in home prices has led to a decrease in home equity. Home equity is the portion of a property's value that is owned outright by the homeowner. In other words, it is the difference between the property's market value and any outstanding mortgage debt.

In 2006, homeowners in the Terre Haute HPI had an average of $76,000 in equity. This declined to just $28,000 by 2016—a decrease of 63%. As of 2020 Q1, homeowners had an average equity stake of $22,000—down 71% from peak levels.

The decrease in home equity has been driven by both falling home prices and rising mortgage debt levels. Mortgage debt outstanding on properties within the Terre Haute HPI increased from $1 billion in 2000 to $3 billion by 2006—an increase of 200%. However, since 2007 debt levels have decreased slightly to $2 billion as some homeowners have paid down their mortgages or lost their homes to foreclosure.