Trenton-Princeton, NJ Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Trenton-Princeton, NJ, 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 HPI covers single-family homes with one to four units and condominiums with one to four units.

The Trenton-Princeton HPI value for 2019Q1 was 244.857, up 0.6 percent from the previous quarter and up 3.4 percent from a year ago. Home prices in the Trenton-Princeton area have been rising steadily since bottoming out in early 2012 and are now nearly back to their pre-recession peak levels. The strong housing market in recent years has been driven by strong economic growth and low mortgage rates.

Home equity is the portion of a home's value that is owned outright by the homeowner, free and clear of any liens or mortgages. In the Trenton-Princeton area, home equity values have also been rising steadily since 2012 and are now at their highest levels since 2007. The increase in home equity values has been driven by both rising home prices and declining mortgage balances.

The combination of rising home prices and increasing home equity has made homeowners in the Trenton-Princeton area increasingly wealthy over the past few years. According to data from the Federal Reserve's Survey of Consumer Finances, median household net worth rose from $317,000 in 2016 to $345,000 in 2019 (in inflation-adjusted dollars). This increase was largely driven by gains in housing wealth, as both home prices and home equity values have risen during this time period.