Home Price Index

A Home Price Index (HPI) is a measure that tracks the overall change in residential home prices over time within a specific area. It helps assess whether home values are rising, falling, or stable, providing valuable insight for homeowners, buyers, investors, and lenders. The index is calculated using data from recent home sales, adjusting for factors like size and location, to give a consistent and comparable indicator of market trends. Think of it as a standardized way to understand how the value of homes is moving in a particular region.