Tucson, AZ Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Tucson, AZ, 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 Tucson HPI includes data from January 2000 through December 2019.

The FHFA HPI is a broad measure of home prices in the United States. Home prices are an important driver of household wealth and spending. The HPI is used in economic analysis and by policy makers to track house price trends at the national, regional, and metropolitan area levels.

In December 2019, the Tucson HPI was 225.8, up 0.2% from November and up 5% from December 2018. On a year-over-year basis, home prices have increased for 46 consecutive months. From December 2015 to December 2019, home prices in Tucson have increased by 22%.

The long-run trend in the Tucson HPI suggests that home prices will continue to rise in 2020 at a rate similar to that seen over the past few years. However, there are several potential risks that could impact home prices in 2020: rising interest rates, continued tightness in housing inventory levels relative to population growth, and potential headwinds from the overall economy if it weakens as some economists expect.