Home Price Growth Falls Further in 2023Q4, Fannie Mae Reports

On Tuesday (1-12-24), Fannie Mae released its latest Home Price Index (FNM-HPI), showing single-family home prices increased 7.1% year-over-year in 2023Q4—up from previous quarter’s revised annual growth of 5.1%. The FNM-HPI is a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the US, excluding condos.

On a quarterly basis, home prices rose a seasonally adjusted 1.7% in Q4, a deceleration from 2.1% growth in Q3. On a non-seasonally adjusted basis, home prices increased by 0.4% in Q4.

Commenting on the results of the FNM-HPI, Fannie Mae Senior Vice President and Chief Economist Doug Duncan said:

“In the current supply-constrained housing market, any changes to the fundamentals of affordability are going to affect demand, and we saw this in the fourth quarter with interest rates peaking near 8% and helping further slow home price growth. Of course, the fourth quarter is also typically the slowest of the year in terms of housing activity and purchase demand, so seasonality should be taken into account, as well. For the year, housing demand held up surprisingly well, in large part due to ongoing demographic support—Millennials continue to drive demand in many areas—and generally strong household finances.”