Though home prices are predicted to drop 6% in the next two years, according to Fannie Mae. Also reported was that the United States housing market is in good shape to take on the decline.
According to Fox Business, the mortgage giant’s Economic and Strategic Research (ESR) Group expected a home price growth decline of 4.2% in 2023, followed by an additional drop of 2.3% in 2024. The anticipated price drops are more than the mortgage giant had previously forecasted, 1.5% and 1.4%, respectively.
The rapid decline in home prices is not likely to create a shock for the market as it did during the 2006 to 2008 period, when prices dropped and borrowers walked away from mortgages, flooding the housing market with foreclosures, according to Fannie Mae.