House Prices Accelerate for First Time in Nearly a Year, According to First American Data & Analytics Monthly Home Price Index Report
MWN-AI** Summary
According to the October 2025 Home Price Index (HPI) report from First American Data & Analytics, national house price growth is experiencing a significant shift. For the first time since November 2024, house prices in the U.S. have seen an acceleration, marking the end of a ten-month period of deceleration. The report highlights a modest year-over-year increase of 0.8% in house prices, although it is accompanied by challenges related to affordability and supply, causing growth to remain near its slowest pace since 2012.
Chief Economist Mark Fleming noted that, despite the uptick in annual price appreciation, it can be better characterized as stabilization rather than a robust recovery. The report showed a slight revision for the previous month, bringing the change from -0.1% to neutral for the August-September period. Within the luxury market segment, price increases have been more pronounced, driven by equity-rich buyers in major metropolitan areas such as New York, Newark, and Pittsburgh. In contrast, starter and mid-tier markets demonstrate weaker growth due to greater sensitivity to mortgage rates and ongoing affordability pressures.
Despite this modest rebound, Fleming suggests that challenges remain and price changes are expected to stabilize rather than surge. The report also unveils market performance across various tiers, with luxury properties gaining traction compared to the more rate-sensitive starter and mid-tier homes. Overall, while October's report indicates a hopeful shift in the housing market, ongoing economic factors are likely to influence its trajectory as 2025 progresses. For ongoing insights, a follow-up report is anticipated in December 2025, which will provide updated data and analysis.
MWN-AI** Analysis
The recent report from First American Data & Analytics indicates a notable turnaround in the U.S. housing market, with annual house price growth experiencing its first acceleration since November 2024, albeit very modest at just 0.8%. Although this signals a potential stabilization in prices after a prolonged period of deceleration, it remains crucial for investors and potential buyers to approach the market with caution.
The report underscores that house price appreciation remains at its slowest pace since 2012, primarily due to ongoing affordability challenges and increased inventory. For the luxury segment, the market is thriving, especially in areas like New York and Newark, where buyers are less impacted by high mortgage rates. However, the same cannot be said for the starter and mid-tiers, where price growth is lagging due to heightened sensitivity to interest rates.
For investors, this suggests a bifurcated market: while luxury properties might present lucrative opportunities, entry-level and mid-market properties could struggle to appreciate. Those looking for investment opportunities may want to focus on regions showing resilience and demand, such as Pittsburgh and Newark, both of which have demonstrated considerable year-over-year growth in their housing indices.
Potential home buyers should carefully assess their financial situations and consider the ongoing economic factors influencing mortgage rates and housing availability. For prospective sellers, the current market environment might necessitate strategic pricing and timing to maximize returns amid the slow pace of price appreciation.
In conclusion, while the uptick in house prices may hint at recovery, market participants should remain vigilant. Strategic investment and purchasing decisions should be informed by localized trends and the overall economic landscape as we approach year-end.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
—National annual price growth accelerated for the first time since November 2024, yet growth remains near its slowest pace since 2012, says Chief Economist Mark Fleming—
First American Data & Analytics , a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its October 2025 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here .
October 1 National House Price Index
First American Data & Analytics’ National Non-Seasonally Adjusted (NSA) HPI | |
Metric | Change in HPI |
September 2025-October 2025 (month over month) | -0.2 percent |
October 2024-October 2025 (year over year) | +0.8 percent |
Highlights
- Annual house price appreciation accelerated in October—the first uptick since November 2024, breaking a 10-month streak of deceleration.
- House price growth reported in last month’s HPI for August 2025 to September 2025 was revised up by 0.1 percentage point from -0.1 percent to 0.0 percent.
“After 10 months of deceleration, October brought a small reacceleration in annual house price growth—the first since November 2024,” said Mark Fleming, chief economist at First American. “The uptick is modest and better characterized as price stabilization, as affordability headwinds and gradually increasing supply continue to sap price pressures. Appreciation remains close to its slowest pace since 2012 and will likely stay that way through the end of the year.”
October 2025 Local Market Price Tier Highlights
The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.
“Local price momentum is ‘top-led.’ Across the 30 largest markets we track, price appreciation is strongest in the luxury tier, led by New York, Newark, N.J. and Pittsburgh,” said Fleming. “At the high end of the market, equity-rich buyers are less constrained by mortgage rates, as cash financing is more common. Home buyers in the starter and mid-tier segments remain more rate-sensitive and the weaker price growth in these tiers reflects the impact of still-low affordability.”
October 2025 First American Data & Analytics Price Tier HPI Highlights 2
Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Luxury Tier HPI | |||
CBSA | Change in Starter Tier HPI | Change in Mid-Tier HPI | Change in Luxury Tier HPI |
New York | -0.1 percent | -1.3 percent | +14.8 percent |
Newark, N.J. | +3.4 percent | +4.8 percent | +5.9 percent |
Pittsburgh | +4.1 percent | +6.0 percent | +5.1 percent |
Washington | +0.5 percent | +1.9 percent | +3.6 percent |
Warren, Mich. | +5.9 percent | +1.6 percent | +3.4 percent |
Additional October 2025 First American Data & Analytics HPI Highlights
Core-Based Statistical Areas (CBSAs) with Greatest Year-Over-Year Increases in HPI | |
CBSA | Change in HPI |
Pittsburgh | +4.5 percent |
Newark, N.J. | +4.0 percent |
Warren, Mich. | +3.3 percent |
New York | +3.2 percent |
St. Louis | +2.9 percent |
Core-Based Statistical Areas (CBSAs) with a Year-Over-Year Decrease in HPI | |
Oakland, Calif. | -5.9 percent |
Tampa, Fla. | -4.4 percent |
Phoenix | -4.0 percent |
Denver | -3.5 percent |
Orlando, Fla. | -2.8 percent |
HPI data for all 50 states and the largest 30 CBSAs by population is available here .
Visit the First American Economic Center for more research on housing market dynamics.
Next Release
The next release of the First American Data & Analytics House Price Index will take place the week of December 15, 2025.
First American Data & Analytics HPI Methodology
The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.
The HPI uses a repeat-sales methodology, which measures price changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.
Disclaimer
Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2025 by First American. Information from this page may be used with proper attribution.
About First American Data & Analytics
First American Data & Analytics , a division of First American Financial Corporation, is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry’s largest property and ownership dataset that includes more than 8.6 billion document images. Its major platforms and products include: DataTree ® , FraudGuard ® , RegsData ® , First American TaxSource™ and ACI ® . Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced decisioning solutions at www.FirstAmDNA.com .
About First American
First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $6.1 billion in 2024, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2025, First American was named one of the 100 Best Companies to Work For by Great Place to Work ® and Fortune Magazine for the tenth consecutive year. More information about the company can be found at www.firstam.com .
1 The most recent index results are subject to revision as data from more transactions become available.
2 This month, we’ve included Newark in place of Cincinnati.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251118731653/en/
Media Contact:
Marcus Ginnaty
Corporate Communications
First American Financial Corporation
(714) 250-3298
Investor Contact:
Craig Barberio
Investor Relations
First American Financial Corporation
(714) 250-5214
FAQ**
How does the recent uptick in annual house price growth reported by First American Corporation FAF in October 2025 compare to trends observed in previous years, particularly regarding affordability pressures?
What impact do luxury tier price increases, as highlighted by First American Corporation FAF, have on the overall housing market stability, especially in comparison to starter and mid-tier segments?
Given the current housing price trends reported by First American Corporation FAF, what indicators should investors monitor to assess potential risks and opportunities in the real estate market moving into 2026?
How might First American Corporation FAF's methodology for measuring home prices influence investor confidence, particularly in markets experiencing significant disparities in price appreciation across different tiers?
**MWN-AI FAQ is based on asking OpenAI questions about First American Corporation (NYSE: FAF).
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