First American Financial Corp Reports on 2025 Housing Market Trends

First American Data & Analytics, a subsidiary of First American Financial Corporation (NYSE: FAF), released its December 2025 Home Price Index (HPI) report, revealing a notable stagnation in national house prices throughout the year. The report, which tracks home price fluctuations with minimal lag, indicates that the annual price growth was just 0.5 percent in December, marking the slowest annual growth since 2012.

According to the report, the National Non-Seasonally Adjusted (NSA) HPI for December showed a month-over-month decrease of 0.2 percent, while the year-over-year change remained at a modest 0.5 percent. This marks the fifth consecutive month of annual house price appreciation staying below 1 percent.

Mark Fleming, Chief Economist at First American, commented on the current state of the housing market, stating, “From a national house price perspective, it’s almost like 2025 didn’t happen – prices finished the year nearly unchanged.” He further highlighted that the housing market appears to have reached a more balanced state, allowing affordability to gradually improve as household income growth continues to outpace price appreciation.

Fleming emphasized that the primary challenge facing the market is inventory. In the top 30 metropolitan areas monitored, house prices are either flat or declining in 20 of these markets. Interestingly, the 10 markets still reporting year-over-year price increases are predominantly located in the Northeast or Midwest, regions where supply constraints have been more pronounced.

Conversely, areas that experienced significant price increases during the pandemic, such as Austin, Texas, and Phoenix, have seen price adjustments as inventory has risen, signaling a normalization process in these once-booming markets.

First American’s HPI categorizes home sales into three distinct tiers: starter, mid, and luxury. The December 2025 data revealed varying trends across these categories:

While several markets showed growth, others faced declines. The most significant decreases in HPI year-over-year were recorded in Oakland, California (-6.0 percent), followed by Denver (-4.0 percent) and Miami (-3.9 percent). This trend underscores the regional disparities in the housing market landscape.

The next installment of the First American Data & Analytics House Price Index is set for release during the week of February 16, 2026. As the housing market continues to evolve, these reports will provide critical insights into ongoing trends and shifts.

First American’s latest HPI report paints a picture of a housing market that has largely stabilized, albeit at a low rate of growth. With household income outpacing price increases, there may be a glimmer of hope for improving affordability in the coming months. As the industry awaits the next report, stakeholders will be keenly observing how supply dynamics and economic conditions evolve in 2026.

For more detailed data and insights, the full report is available through the First American Economic Center.