T
he housing market's future path remains a topic of interest, with experts predicting steady growth over the next four years. While recent price jumps are expected to cool down, home prices will likely continue to rise, averaging a cumulative gain of nearly 20% across the U.S. between 2025 and 2029.

    Experts surveyed by Fannie Mae predict that after a strong showing in 2024, national home prices will grow at a slower pace in 2025 and 2026, with average forecasts of 3.4% and 3.3%, respectively. This moderation is expected to continue through 2029, with the panel's cumulative prediction for national home prices rising by 19.8%.

    The survey also highlights the wide range of opinions among experts, with optimists predicting a cumulative price increase of 31.0% by the end of 2029 and pessimists forecasting a gain of just 8.3%. This dispersion is attributed to factors such as mortgage rate paths, economic outlooks, inventory levels, and affordability crises.

    Historical context suggests that the predicted growth rate of 3.7% per year for 2025-2029 is slower than recent years but still above historical norms. The survey's findings are in line with a return to more sustainable market conditions after an extraordinary period driven by low rates and pandemic-related demand shifts.

    For buyers, the forecast suggests that prices will continue to rise, albeit at a slower pace, making affordability a key concern. Sellers can expect a favorable market but should be prepared for realistic pricing and expectations. Homeowners can look forward to continued equity growth, albeit at a slower pace than in recent years.

    The bottom line is that the housing market is expected to transition into a period of slower growth, with prices continuing to rise but at a more gradual rate. The key challenge remains the housing supply shortage, which will continue to affect affordability and competition in the market.