Experts Project Slower Home Price Growth Amid Market Changes

Author: Evelyn Baker Updated: 09-30-2025 02:55 PM

Forecasting Changes in Home Prices

In recent discussions among a diverse panel of housing market experts, projections indicate that home prices may experience a notable moderation in growth over the next few years. Following a substantial national home price increase of 5.3% observed in the previous year, experts foresee this growth rate decreasing to an average of 2.4% in the upcoming year.

Understanding the Slower Growth Rates

According to the Q3 2025 Home Price Expectations Survey conducted by Fannie Mae, in collaboration with Pulsenomics, LLC, this forecast shows a shift from earlier expectations of 2.9% for 2025. The anticipated decline continues with estimates suggesting a further reduction to 2.1% in 2026. Such adjustments reflect a comprehensive analysis of various influences affecting the housing market.

Factors Influencing Home Price Deceleration

During this quarter's survey, participants were prompted to share their insights on multiple aspects impacting the deceleration of home prices. Factors including the age demographics of first-time homebuyers, fluctuations in mortgage rates, and their influence on home sales activity were key areas of focus. Understanding these dynamics is critical for prospective buyers and real estate professionals alike.

Insights from the Economic and Strategic Research Group

The Economic and Strategic Research Group at Fannie Mae has emphasized the importance of interpreting these trends within the context of broader economic indicators. They encourage stakeholders to consider that these predictions stem from extensive data analysis and expert opinions. Although such estimates are grounded in reliable data, they remain subject to potential changes based on evolving market conditions.

The Role of Consumer Confidence

Consumer sentiment plays a substantial role in shaping housing market dynamics. As prospective buyers weigh their options, factors such as job stability, income growth, and savings rates heavily influence their decisions. Continued monitoring of these indicators will provide clearer insight into the future of home prices and sales activity.

Future Surveys and Expectations

Fannie Mae plans to conduct regular updates to the Home Price Expectations Survey, ensuring that market participants remain informed of prevailing trends and predictions. By polling over 100 experts in the housing and mortgage sectors on a quarterly basis, the organization aims to provide valuable insights into how the market is shifting.

Conclusion: An Evolving Landscape

As we look forward, understanding the intricacies of the housing market becomes increasingly vital for both buyers and sellers. Given the projected growth rates and varying factors influencing these figures, it is essential for all parties involved to maintain an informed perspective to navigate this shifting landscape effectively.

Frequently Asked Questions

What is the projected home price growth for 2025?

The predicted average home price growth for 2025 is 2.4% according to the latest industry forecasts.

How does this compare to 2024?

This is a significant decline from the 5.3% growth observed in 2024.

Who conducted the Home Price Expectations Survey?

The survey was conducted by Fannie Mae in partnership with Pulsenomics, LLC, featuring insights from over 100 housing experts.

What are some of the factors affecting home prices?

Factors include mortgage rates, the age demographics of first-time homebuyers, and overall consumer confidence in the economy.

How often is the Home Price Expectations Survey updated?

The survey is updated quarterly to provide the most recent insights and trend forecasts.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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