According to Fannie Mae’s most recent Home Price Index (HPI), single-family home prices increased 6.9% year-over-year during the second quarter, a pullback from the first quarter’s growth rate of 7.3%. On a quarterly basis, home prices rose a seasonally adjusted 1.3% in the first quarter of 2024, down from the revised 2.0% growth during the first quarter of 2024. On a non-seasonally adjusted basis, home prices increased by 3.0% in Q2 2024.
“Home prices rose again in the second quarter, but the pace of growth slowed as important elements of housing demand and supply inched closer together,” said Doug Duncan, Fannie Mae SVP and Chief Economist. “Elevated mortgage rates and ongoing affordability constraints are increasingly limiting homebuyer demand and thus dampening the pace of home price appreciation. Meanwhile, the number of homes available for sale is rising in many metro areas, which is also dampening home price growth. While we expect home price growth to decelerate further in the coming quarters, a still-tight inventory of homes for sale and stretched affordability remain significant challenges and, in our view, are likely to constrain mortgage demand and home sales for the foreseeable future.”
The HPI is a national reading of home transactions measuring the average quarterly price change for all single-family properties in the country, excluding condos. The report is produced by aggregating county-level data to create both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country and designed to serve as indicators of general single-family home price trends. The HPI is publicly available at the national level as a quarterly series with a start date of 1975 and extending to the most recent quarter.
