Increased supply and weak demand are both contributing to the slowdown in house price growth. The recent sharp drop in mortgage rates should cause the market to retighten, but it will take time for that to show up in house prices, which work with a significant lag. As a result, we are lowering our 2024 house price forecast to 3% (down from 5%) and raising our 2025 and 2026 forecasts slightly to 4% (up from 3% and 2.5% respectively).
In view of wider interest we are also sending this US Housing Update to clients of our US Economics service.
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