Winston-Salem, NC Federal Housing Finance Agency Home Price Index (FHFA HPI)

In the fourth quarter of 2019, the Winston-Salem, NC, Federal Housing Finance Agency (FHFA) house price index (HPI) was 154.48. This value represents a 4.48% increase in home prices in Winston-Salem from the fourth quarter of 2018 to the fourth quarter of 2019. The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties.

Between 2000 and 2006, home prices in Winston-Salem more than doubled, increasing by 107%. However, prices then fell sharply during the housing market crash of 2007-2008, declining by almost 18% from their peak in 2006 to their trough in 2011. Prices have since recovered somewhat, but as of 2019 they remain about 9% below their pre-crash peak.

The sharp increase in home prices between 2000 and 2006 was largely driven by easy credit conditions and strong demand for housing. In particular, many people took advantage of low interest rates and relaxed lending standards to buy homes that they otherwise would not have been able to afford. The subsequent decline in prices was caused by a combination of factors including tighter credit conditions, falling demand for housing due to job losses during the recession, and an oversupply of homes on the market as foreclosures increased.

The rebound in home prices since 2011 has been driven primarily by improving economic conditions and increased demand for housing as more people feel confident about their job prospects and finances. Additionally, there has been a decrease in the number of foreclosed homes on the market as more homeowners have been able to stay current on their mortgage payments thanks to rising incomes and falling unemployment rates.