WASHINGTON—Single-family home prices increased 6.9% from Q2 2023 to Q2 2024, a decline from the previous quarter’s upwardly revised annual growth rate of 7.3%, according to Fannie Mae’s latest Home Price Index.
On a quarterly basis, home prices rose a seasonally adjusted 1.3% in Q2 2024, down from the revised 2.0% growth in Q1 2024. On a non-seasonally adjusted basis, home prices increased by 3.0% in Q2 2024.
“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,” Doug Duncan, Fannie Mae senior vice president and chief economist, said in a statement. “Elevated mortgage rates and ongoing affordability constraints are increasingly limiting homebuyer demand and thus dampening the pace of home price appreciation.
Inventory Remains Issue
“Meanwhile, the number of homes available for sale is rising in many metro areas, which is also dampening home price growth,” Duncan continued. “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.”
According to Fannie Mae, 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.