Home prices continued to rise in 2023. In fact, according to a panel of housing market experts surveyed by Fannie Mae, home price growth is expected to come in just under 6 percent for the year. That's lower than the double-digit increases seen during the pandemic but still surprisingly steady.
Doug Duncan, Fannie Mae's senior vice president and chief economist, says higher rates were expected to slow prices more than they did. “Some, including us, had expected the rapid and significant rise in mortgage rates in 2023 to have dampened purchase demand further than it has, putting more downward pressure on home prices this past year than what appears to have occurred,” Duncan said.
But while prices didn't slow as much as expected, they will continue to moderate in 2024. Survey respondents said they expect slower growth next year and the year after, with a roughly 2.5 percent increase in both 2024 and 2025. That, along with an expected drop in rates, should help buyer affordability in the new year and beyond.
[Source: PR Newswire]
