Fannie Mae predicts lower home prices in 2023
Market Update - July 2023
Fannie Mae just released their latest forecast for the national housing market which projects that home prices will gradually decrease by 1.2% this year and an additional 2.2% in 2024.
We expect to see the housing market continue to neutralize into a healthier market with lower prices & more inventory over time; however, right now what we’ve seen this month is very different.
Key Takeaways
⚡️ Amount of available homes JUMPED from just over 950 homes to over 1,200 homes.
⚡️ Average price per square foot increased from $293 in May to $300 in June
⚡️ The average days a home is listed for decreased from 29 days to 21 days on average.
⚡️ Months of inventory slightly increased from 1 month of inventory to 1.2 months of inventory.
From May to June in Pierce County, the amount of available homes JUMPED from just over 950 homes to over 1,200 homes. Homes Sold and the number of homes going under contract balanced out around one thousand homes.
Last month, the average price per sqft bumped up from $293 to $300. That said, around May to June is when home prices peaked in 2022 so it will be interesting to see where home prices go from here – Especially with Fannie Mae’s recent forecast to consider.
Homes For Sale VS Under Contract VS Sold
Average Price Per SQFT
Average Days On Market
Sold Price/Original List Price
Months Of Inventory
It’s important to note that Fannie Mae’s most recent price drop prediction is less than how much it had originally predicted home prices would drop by – which was around 4.3% in 2023 and 2.3% in 2024.
Though the numbers have slightly changed, there is still expected to be a gradual decrease in home prices in the near future.
Rather than a market crash, we believe that the housing market is shifting to be more neutral and healthier where the prices are lower and the inventory is higher… just at a really slow rate!
Looking to get a market report in a specific city in Pierce County? We do market reports for Puyallup, Bonney Lake, Lake Tapps, Sumner, and Tacoma.
