Fannie Mae: Home Prices Show Signs Of Slowing

Single-family home prices increased 6.9% from Q2 2023 to Q2 2024, down from the previous quarter's upwardly revised annual growth rate of 7.3%. That's according to Fannie Mae's latest Home Price Index reading, a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the United States, excluding condos.

Quarterly, home prices rose a seasonally adjusted 1.3% in Q2 2024, down from the revised 2% growth in Q1 2024. On a non-seasonally adjusted basis, home prices increased by 3% in Q2 2024.

"Home prices rose again in the second quarter, but the pace of growth slowed as important elements of housing demand and supply inched closer together," said Fannie Mae Senior Vice President and Chief Economist, Doug Duncan. "Elevated mortgage rates and ongoing affordability constraints are increasingly limiting homebuyer demand and thus dampening the pace of home price appreciation."

Duncan continued, "Meanwhile, the number of homes available for sale is rising in many metro areas, which is also dampening home price growth. While we expect home price growth to decelerate further in the coming quarters, a still-tight inventory of homes for sale and stretched affordability remain significant challenges and, in our view, are likely to constrain mortgage demand and home sales for the foreseeable future."