By 2024, annual home price growth in the United States is expected to be 2.4%. Similarly, by 2025 the increase will be 2.7% according to the Fannie Mae Housing Price Expectations Survey (HPES).The study surveyed more than 100 experts from the housing industry, mortgage and academia.
This with the aim of obtaining a forecast of percentage changes in housing prices across the country over the next five calendar years.
In this sense, as expected by the panel, housing price growth in 2023 was 5.9%. This is followed by slower growth of 2.4% and 2.7% in 2024 and 2025 respectively.
On the other hand, Doug Duncan, Fannie Mae’s senior vice president and chief economist, addressed several essential aspects on the subject.
He noted that survey panelists expect house price growth to slow in the coming years.
They also expect future mortgage rates to drop significantly from the recent high of 8%.
What can happen this year?
Similarly, it is anticipated that other factors may affect long-term interest rates. These include demographic trends, increasing fiscal deficits, the development of artificial intelligence and the transition to green energy.
Across the panel, the median expected home price growth rate for 2023 rose to 5.9%, said Terry Loebs, founder of Pulsenomics.
So, compared to the 3.3% level reported in the previous survey (conducted by Pulsenomics), this represents a significant increase.
What will happen in 2024?: Well, most of the experts surveyed do not predict this momentum to continue until 2024.
Loebs also highlighted that the forecast symbolizes an encouraging consensus for homebuyers this New Year.
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