Fannie Mae reported today (10-17-22) its latest Home Price Index (FNM-HPI) for 2022Q3. 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 condominiums. According to the FNM-HPI, single-family home prices increased at a non-seasonally adjusted rate of 13.8% in Q3—down from the revised Q2 reading of 19.1%.
On a quarterly basis, home prices rose a seasonally adjusted 0.2% in Q3, the slowest quarter of growth since 2011Q4. On a non-seasonally adjusted basis, home prices declined 0.2% in Q3 2022.
Adding additional background and his analysis, Doug Duncan, Fannie Mae’s Senior Vice President and Chief Economist, said:
“Year-over-year home price growth decelerated in the third quarter, as the sharp rise in mortgage rates—and declining housing affordability—appears to have weighed further on demand. In addition to the greater affordability constraints for potential homebuyers, many existing homeowners likely feel ‘locked-in’ to their existing, lower interest-rate mortgages. This contributes to fewer homes being listed, as well as fewer potential buyers, and may lead to a growing share of listings having to cut prices to meet the reduced demand. Furthermore, the supply of completed, new single-family homes for sale has begun to rise, suggesting that homebuilders may also need to begin offering greater price concessions to move inventory. We expect these trends to continue in the coming months.”
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