Fannie Mae: Single-Family Home Prices Climb 7.1% In One Year

Single-family home prices increased 7.1% over the last year. That's according to Fannie Mae's latest Home Price Index.

Home prices rose 7.1% from Q4 2022 to Q4 2023, up from the previous quarter's revised annual growth rate of 5.1%.

On a quarterly basis, home prices rose a seasonally adjusted 1.7% in Q4 2023, a deceleration from 2.1% growth in the third quarter. On a non-seasonally adjusted basis, home prices increased by 0.4% in Q4 2023.

"In the current supply-constrained housing market, any changes to the fundamentals of affordability are going to affect demand, and we saw this in the fourth quarter with interest rates peaking near eight percent and helping further slow home price growth," Fannie Mae Senior Vice President and Chief Economist Doug Duncan said. "Of course, the fourth quarter is also typically the slowest of the year in terms of housing activity and purchase demand, so seasonality should be taken into account as well. For the year, housing demand held up surprisingly well, in large part due to ongoing demographic support – millennials continue to drive demand in many areas – and generally strong household finances."

Fannie Mae's Home Price Index is produced by aggregating county-level data for both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country.