Tuscaloosa, AL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Tuscaloosa, AL Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family properties in the United States. The index was created in order to provide a more current and accurate measure of house prices than the existing measures, which only looked at sales data from a specific point in time.

The Tuscaloosa HPI is based on data from Fannie Mae and Freddie Mac's monthly 30-year fixed-rate mortgage purchases. The HPI covers all nine census divisions and includes both new and existing home sales. Home sales data are collected from county recorder offices and processed by CoreLogic, a real estate information and analytics company.

As of September 2020, the Tuscaloosa HPI was at 184.0, up 0.8% from August 2020 and up 5.3% from September 2019. The year-over-year increase in the Tuscaloosa HPI was driven by increases in both home equity and home prices. Home equity is the difference between the value of a property and the outstanding balance on its mortgage loan. In September 2020, home equity in Tuscaloosa increased to an average of $159,000 per property, up $9,000 from August 2020 and up $14,000 from September 2019. Meanwhile, home prices in Tuscaloosa increased to an average of $219,000 per property in September 2020, up 1% from August 2020 and up 4% from September 2019.

The recent increases in both home equity and home prices suggest that housing market conditions in Tuscaloosa are improving as we head into 2021. This is good news for potential buyers who may have been waiting for more favorable conditions before entering the market. However, it's important to remember that housing markets can be volatile; while things are looking good now, there's no guarantee that they will stay that way indefinitely. If you're thinking about buying a home in Tuscaloosa or any other market for that matter), it's always best to consult with a qualified real estate professional to get expert advice on timing your purchase just right."