Single-family home prices increased 5.3% from the third quarter of 2022 to the third quarter of 2023, up from the previous quarter’s revised annual growth rate of 2.9%, according to Fannie Mae’s home price index report.
The report excludes condos.
On a quarterly basis, single-family home prices increased a seasonally adjusted 2.0% in the third quarter compared with the second quarter.
That’s a deceleration from 2.1% growth in the second quarter.
On a non-seasonally adjusted basis, home prices increased by 1.7% in the third quarter.
“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” says Doug Duncan, senior vice president and chief economist for Fannie Mae, in a statement. “We’re now in the fourth quarter, when house price appreciation typically slows, and with interest rates both higher and more volatile, it would be reasonable to expect some additional slowing in price appreciation, but the ongoing supply problems continue to drive the larger affordability challenge.”
The FNM-HPI 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.
Photo: Alexander Andrews