Expert Panel Anticipates Home Price Growth Will Moderate
U.S. home price growth, which rose 5.3% in 2024, is expected to slow significantly in the coming years, according to Fannie Mae’s Q3 2025 Home Price Expectations Survey conducted with Pulsenomics. A panel of more than 100 housing experts now forecasts average price growth of 2.4% in 2025 and 2.1% in 2026, down from last quarter’s projections of 2.9% and 2.8%, respectively. Panelists cited multiple factors for the expected deceleration and also shared views on first-time homebuyer trends, the mortgage rate threshold that could spur stronger sales activity and the value of homeownership to younger generations.
The survey, which gathered input from 114 experts between August 11 and August 25, 2025, provides insight into long-term housing expectations using the Fannie Mae Home Price Index as a benchmark. Produced by Fannie Mae’s Economic and Strategic Research (ESR) Group in partnership with Pulsenomics, the HPES publishes quarterly results and trend analyses. While based on reliable data, Fannie Mae cautions that these forecasts are subject to change depending on future economic conditions, emphasizing that they reflect the views of the ESR Group and respondents rather than official company projections.
