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Home Price Growth Decelerated in Q3

Fannie Mae: Home price growth was at an annualized rate of 13.2%, down from 19.1% in 2Q 2022. Prices rose a seasonally adjusted 0.2% from 2Q – slowest since 2011.

WASHINGTON – The latest Fannie Mae Home Price Index found that home price growth slowed in the third quarter of 2022 amid increasing mortgage rates and housing inventory. Home price growth stood at an annualized rate of 13.2%, down from 19.1% in the previous quarter.

“In addition to the greater affordability constraints for potential home buyers, many existing homeowners likely feel ‘locked-in’ to their existing, lower interest-rate mortgages,” said Fannie Mae chief economist Doug Duncan. “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.”

Duncan added that “the supply of completed, new single-family homes for sale has begun to rise, suggesting that home builders may also need to begin offering greater price concessions to move inventory. We expect these trends to continue in the coming months.”

Home prices rose a seasonally adjusted 0.2% from the second quarter, marking the slowest quarter of growth since the fourth quarter of 2011.

Source: HousingWire (10/17/22) Han, Brooklee

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