By 2024, annual home price growth in the United States is expected to increase by 2.4%. Similarly, according to the Fannie Mae Housing Price Expectations Survey (HPES) the increase will be 2.7% by 2025.The study surveyed more than 100 experts in the housing industry, mortgage and academia.
Its objective is to obtain a forecast of the percentage change in housing prices across the country over the next five calendar years.
In this sense, as the Panel estimated, the growth in housing prices in 2023 was 5.9%. This will be 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 topic.
He said survey panelists expect home price growth to slow in the coming years.
He also expects mortgage rates to fall significantly in the future from the recent high of 8%.
What can happen this year?
Similarly, it is anticipated that other factors may influence long-term interest rates. These include demographic trends, increasing fiscal deficit, development of artificial intelligence and transition to green energy.
Pulsenomics founder Terry Loebs said that across the panel, the average expected home price growth rate for 2023 increased to 5.9%.
Therefore, compared to the 3.3% level recorded 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 expect this momentum to continue till 2024.
Loebs also highlighted that this forecast marks an encouraging consensus for interested home buyers in this new year.