Single-family home prices increased 1.7% in the first quarter compared with the second quarter and were up 7.4% compared with the first quarter of 2023, according to Fannie Mae’s home price index report.
The national, repeat-transaction home price index measures the average quarterly price change for all single-family properties in the U.S., excluding condos.
“Home prices continued to rise in the first quarter as the housing market remained seriously supply constrained,” says Doug Duncan, senior vice president and chief economist for Fannie Mae, in a release. “The stabilization of mortgage rates in the 6.6 to 6.7 percent range in January helped to boost demand early in the first quarter, with existing home sales and mortgage applications both rising.
“Mortgage rates have trended upward again of late, but there is support for home prices in strong demographic demand from younger generations,” Duncan adds. “We expect home sales to rise modestly this year as potential homebuyers appear to be acclimating to the higher-rate environment and, in some cases, may be less able to put off moving for life reasons.”
Photo: Phil Hearing