Single-Family Home Prices Increased 5.9% Year-Over-Year

Single-family home prices increased 5.9% from Q3 2023 to Q3 2024, a deceleration compared to the previous quarter’s downwardly revised annual growth rate of 6.4%.

That's according to the latest reading of the Fannie Mae Home Price Index (FNM-HPI), a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the United States, excluding condos.

Home prices rose a seasonally adjusted 1.3% in Q3 2024 compared to last quarter, down from the revised 1.4% growth in Q2 2024. Home prices increased by 0.9% in Q3 2024 on a non-seasonally adjusted basis.

“Despite decelerating slightly, home price growth remained robust in the third quarter, as the supply of homes for sale, particularly on the existing side, remained weak relative to historical levels,” said Fannie Mae Senior Vice President and Chief Economist Mark Palim. “Even though mortgage rates fell precipitously in the third quarter, and we saw some improvements to the months’ supply of homes for sale, home purchase activity barely budged – at least on a national basis – which we view as evidence that the market remains significantly constrained by both the ‘lock-in effect’ and affordability generally, but especially elevated home prices."

Palim continued, "In September, high home prices supplanted high mortgage rates as the top reason for our survey respondents’ overwhelming pessimism toward homebuying conditions. Overall, the strength of this latest home price reading confirms the ongoing challenges with tight supply; however, the index’s continued deceleration shows that we’re slowly moving toward a better balance between supply and demand.”