First American Financial Corp Reports Positive Year-Over-Year Home Price Growth in New York Metro Area
1. Overview of the September 2025 Home Price Index
First American Data & Analytics, a division of First American Financial Corporation (NYSE: FAF), has released its September 2025 Home Price Index (HPI) report, revealing a notable year-over-year increase of 5.1% in home prices for the New York-Jersey City-White Plains metropolitan area. This report, which tracks home price changes with less than four weeks of lag, indicates a positive trend amidst a broader national cooling in housing prices.
2. Key Findings from the HPI Report
Year-Over-Year and Month-Over-Month Trends
The report highlights the following key metrics for the New York-Jersey City-White Plains market:
- Month-over-Month Change (August 2025 - September 2025): +0.2%
- Year-over-Year Change (September 2024 - September 2025): +5.1%
In contrast, the national HPI recorded a slight decrease of 0.1% month-over-month but a modest increase of 1.1% year-over-year. This divergence emphasizes the unique dynamics within the New York metropolitan area compared to national trends.
Insights from Chief Economist Mark Fleming
Mark Fleming, Chief Economist at First American, noted that the national housing market has experienced ten consecutive months of slowing annual price appreciation. According to Fleming, "Nationally, house prices are now 0.7 percent below their peak in May as demand adjusts to affordability constraints and inventory improves." He pointed out that buyers are benefiting from a market that offers more options and increased negotiating power due to the slowing pace of price appreciation.
3. Price Tier Analysis in the New York Metro Area
First American’s HPI segments home price changes into three distinct tiers based on local market sales data:
- Starter Tier: Homes in the bottom third of the market price distribution
- Mid-Tier: Homes in the middle third of the market price distribution
- Luxury Tier: Homes in the top third of the market price distribution
Year-Over-Year Price Changes by Tier
The following changes were observed in the New York-Jersey City-White Plains metro area from September 2024 to September 2025:
| Price Tier | Year-over-Year Change |
|---|---|
| Starter | +1.4% |
| Mid-Tier | +1.4% |
| Luxury | +14.8% |
This data indicates a significant appreciation in luxury properties, which have outperformed both starter and mid-tier homes.
4. National Trends and Regional Variations
Fleming highlighted that while house prices have declined year-over-year in 19 of the 30 largest markets tracked, there are notable regional disparities. For instance, markets like Cincinnati continue to see strong growth, while others, particularly those that experienced rapid price increases during the pandemic—such as Phoenix and Tampa—are undergoing recalibration.
Noteworthy Core-Based Statistical Areas (CBSAs)
The report also identified CBSAs with the greatest year-over-year increases in home prices:
- Cincinnati: +8.4%
- New York: +5.1%
- Cambridge, Mass.: +3.9%
- Warren, Mich.: +3.6%
- St. Louis: +2.4%
Conversely, several markets have experienced declines, including:
- Oakland, Calif.: -7.4%
- Tampa, Fla.: -5.9%
- Phoenix: -4.5%
- Riverside, Calif.: -3.6%
- Denver: -3.0%
5. Conclusion and Future Outlook
The findings from First American's September 2025 HPI report illustrate a resilient housing market in the New York-Jersey City-White Plains area, contrasting with broader national trends. As the market continues to adjust to affordability challenges and inventory improvements, buyers may find favorable conditions for negotiation and choice.
The next release of the First American Data & Analytics House Price Index is scheduled for the week of November 17, 2025, which will provide further insights into ongoing market dynamics. For more detailed information, interested parties can visit the First American Economic Center.
