According to the Q4 2024 Fannie Mae Home Price Expectations Survey (HPES), a panel of over 100 housing experts predicts that national home prices will grow by an average of 5.2% in 2024. However, this growth is expected to slow down in the following years, with forecasts of only a 3.8% increase in 2025 and a further decrease to just 3.6% in 2026.
This survey, produced by Fannie Mae and Pulsenomics LLC, shows an upward revision from last quarter’s expectations for home price growth.
In addition to these predictions for future home prices, Fannie Mae’s Economic & Strategic Research Group also surveyed panelists on their overall outlook for the housing market in the year ahead. The results show that existing home sales are expected to remain sluggish while new home sales may see a slight increase. Mortgage rates are also predicted to stay high but could potentially decline modestly throughout the year.
Mark Palim, Senior Vice President and Chief Economist at Fannie Mae stated that they share their panelists’ belief that there will be slower growth next year due to elevated mortgage rates and rising prices over recent years making it difficult for many potential buyers afford homes.
The headquarters of Fannie Mae can be seen pictured above located in Washington D.C.
