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Fannie Mae Survey Predicts Continued Home Price Growth and Weak Sales
Following an average expectation for national home price growth of 5.2% in 2024, a panel of more than 100 housing experts forecasts price growth to decelerate to 3.8% in 2025 and 3.6% in 2026, according to the Q4 2024 Fannie Mae Home Price Expectations Survey, produced in partnership with Pulsenomics, LLC. The panel’s latest estimates of national home price growth represent an upward revision from last quarter’s expectations.
Fannie Mae’s Economic & Strategic Research Group also surveyed panelists on their general housing outlook for 2025. On average, the panelists expect existing home sales to remain sluggish for another year, new home sales to trend slightly upward and mortgage rates to remain elevated but modestly decline to 6.3% throughout 2025.
“We share our panelists’ view that home price growth is likely to decelerate next year, as the mix of continued elevated mortgage rates and the run-up in home prices of the past four years will likely continue to strain affordability and remain an impediment to many would-be homebuyers,” said Mark Palim, Fannie Mae SVP and chief economist.
Pictured: Fannie Mae headquarters in Washington, DC.
- ◦Economy
