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Home price growth is starting to slow down. According to National Mortgage Professional, Fannie Mae recently revised its 2024 home price growth forecast from 4.3% to 4.7%, down from a 6% increase in 2023. The 2025 projection was also slightly lowered from 3.2% to 3.1%. This shift is likely due to improved inventory. Previously, the housing shortage was estimated to be 4 million homes, but now that number has lowered to about 2.8 million homes.
“Recent measures of home price growth, including our own, have continued to come in stronger than previously expected, as reflected by the 100-plus HPES panelists who, on average, once again modestly upgraded their home price outlook for 2024,” Fannie Mae Vice President and Deputy Chief Economist Mark Palim said. “Strong home price appreciation has persisted despite purchase affordability remaining stretched for the vast majority of consumers, a dynamic that is still primarily a function of inadequate supply.”
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