“Whereas house worth progress is predicted to ease subsequent yr, HPES panelists’ big-picture view for 2025 seems to be little modified in comparison with 2024, with most seeing one other yr of elevated mortgage charges and weak house gross sales,” stated Fannie Mae senior vp and chief economist Mark Palim.
About 80% of the respondents anticipated to see a deceleration in house worth progress due to persisting excessive mortgage charges, rising for-sale housing stock, and slower wage progress.
“We share our panelists’ view that house worth progress is more likely to decelerate subsequent yr, as the combo of continued elevated mortgage charges and the run-up in house costs of the previous 4 years will seemingly proceed to pressure affordability and stay an obstacle to many would-be homebuyers,” stated Palim.
In the meantime, the remaining respondents who imagine that there will likely be quicker house worth appreciation stated that it will likely be due to robust pent-up demand from first-time consumers, continued tightening of stock of properties on the market, and easing mortgage charges.
“Though a major majority of consultants count on the nationwide house worth appreciation fee will diminish from latest ranges, the panelists’ annual common projected worth improve via 2029 remains to be properly above expectations for economy-wide inflation, suggesting that they count on affordability issues to persist properly past 2025,” stated Pulsenomics founder Terry Loebs.
