Following national home-price growth of 5.8% in 2024, a panel of more than 100 housing experts forecasts home-price growth to average 3.4% in 2025 and 3.3% in 2026.
That’s according to the Q1 2025 Fannie Mae Home Price Expectations Survey, produced in partnership with Pulsenomics, LLC, which forecasts national home-price percentage changes in each of the coming five calendar years.
The panel’s latest estimates of national home-price growth represent revisions from last quarter’s expectations of 3.8% for 2025 and 3.6% for 2026, as measured by the Fannie Mae Home Price Index.
In tandem with the panel’s lower revisions for the next two years, Fannie Mae’s ESR Group also recently revised its expectations downward for mortgage rates, which are now expected to end 2025 and 2026 at 6.3% and 6.2%, respectively.
Fannie’s economic growth outlook for 2025 was revised to 1.7%, down from the previous figure of 2.2%, as the government-sponsored enterprise (GSE) updated its predictions to account for the whirlwind of tariff news and a fierce trade war.
HousingWire’s 2025 Housing Market Forecast predicts home-price growth of 3.5% this year, which was at the higher end among 13 other forecasts released in 2024, which averaged 2.6% growth. National Association of Realtors (NAR) Chief Economist Lawrence Yun projects a 2% rise in home prices in both 2025 and 2026. Fannie Mae expected its home price index to rise by 3% at that time.
Despite broader economic challenges, the spring home-selling season has seen some traction this year compared to last. In the most recent Housing Market Tracker, Lead Analyst Logan Mohtashami noted: “We’ve witnessed a solid year with purchase application data and our pending home sales contract data has shown year-over-year growth recently.”
