Washington-Arlington-Alexandria, DC-VA-MD-WV (MSAD) Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Washington-Arlington-Alexandria, DC-VA-MD-WV Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses in the Washington-Arlington-Alexandria metropolitan area. The HPI value for any given quarter is equal to the weighted average of indices for all transactions closed during that quarter.

As of the fourth quarter of 2019, the FHFA HPI for the Washington-Arlington-Alexandria metropolitan area was 251.7, up 4.8 percent from the fourth quarter of 2018. This increase in home prices was driven by strong economic conditions in the region, including low unemployment and rising wages.

The FHFA HPI is based on data from Fannie Mae and Freddie Mac, which purchase and securitize mortgages originated by lenders nationwide. The HPI values are calculated using a repeat sales methodology, which compares sales prices of the same properties over time. This methodology controls for differences in quality between properties by only considering transactions involving properties that have been sold at least twice since January 1, 1975.

The HPI values are reported at both the national level and for each of nine census divisions: New England, Middle Atlantic, East North Central, West North Central, South Atlantic, East South Central, West South Central, Mountain , and Pacific . The Washington-Arlington-Alexandria metropolitan area is located in the Middle Atlantic division.

As of 2019 Q4 ,the FHFA House Price Indexfor Metropolitan Statistical Areas (MSAs) ranged from 155.3 (Youngstown–Warren–Boardman OH–PA MSA) to 402.1(San Jose–Sunnyvale–Santa Clara CA MSA). The top five MSAs with highest index values were San Francisco–Oakland–Hayward CA MSA(386), Honolulu HI MSA(379), San Jose–Sunnyvale–Santa Clara CA MSA(402), Urban Honolulu CDP HI(390), and Los Angeles–Long Beach–Anaheim CA MSA(383).