Single-family home prices increased a seasonally adjusted 1.3% during the second quarter, down from a revised 2.0% in the first quarter, according to Fannie Mae’s Home Price Index, which excludes condos.
Compared with the second quarter of 2023, home prices increased 6.9%, down from the previous quarter’s upwardly revised annual growth rate of 7.3%.
On a non-seasonally adjusted basis, home prices increased by 3.0% in the second quarter.
“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,” says Doug Duncan, senior vice president and chief economist for Fannie Mae, in a statement. “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,” Duncan adds. “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.”
Photo: Dillon Kydd