Waco, TX Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Waco, TX, 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 was created in order to be a more accurate measure of house price changes than other commonly used indices because it uses data on actual transactions rather than appraisals.

As of December 2020, the Waco HPI was at 178.7, up from 176.8 in November 2020 and 171.2 in December 2019. This represents a year-over-year increase of 3.5%. Home equity in Waco has increased along with home prices, rising from an average of $74,000 in Q4 2019 to $77,000 in Q4 2020.

There are several reasons why home prices have been increasing in Waco. One is that the economy has been improving, which has led to more people having jobs and being able to afford a home. Additionally, low interest rates have made it cheaper to borrow money for a mortgage, further boosting demand for homes. Lastly, there has been limited supply of homes available for sale relative to demand from buyers, leading to increased competition and higher prices.

Looking ahead, it is expected that home prices will continue to rise as the economy continues to recover from the pandemic recession and interest rates remain low by historical standards. This will likely lead to even more people wanting to buy homes and bidding up prices even further above current levels.