Home prices rose a seasonally adjusted 1.9% in Q2 2023. 

Single-family home prices increased 3.0 percent from Q2 2022 to Q2 2023, down from the previous quarter’s revised annual growth rate of 4.9 percent, according to Fannie Mae’s latest Home Price Index (FNM-HPI) reading, a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the United States, excluding condos. On a quarterly basis, home prices rose a seasonally adjusted 1.9 percent in Q2 2023, an acceleration from 1.3 percent growth in the first quarter. On a non-seasonally adjusted basis, home prices increased by 3.6 percent in Q2 2023. “Once again, home price growth surprised to the upside,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Housing demand remains resilient, which continues to butt up against the near-historically limited supply of existing homes for sale. Moreover, the ‘lock-in effect,’ in which homeowners are disincentivized to list their homes for sale because of how high mortgage rates have risen, is seriously inhibiting the supply of existing homes available for sale. At nearly 8 percent on a seasonally adjusted annualized basis, this past quarter's home price growth was well above the historical average. One consequence of the stronger home price environment is that new home construction is well-supported. Unfortunately, any hopes of a better-balanced home supply situation may rest on the ability of homebuilders to meet ongoing demand.” The FNM-HPI is produced by aggregating county-level data to create both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country and designed to serve as indicators of general single-family home price trends. The FNM-HPI is publicly available at the national level as a quarterly series with a start date of Q1 1975 and extending to the most recent quarter, Q2 2023. Fannie Mae publishes the FNM-HPI approximately mid-month during the first month of each new quarter. 

Source: Fannie Mae