National House Price Growth Stabilizes in Low Single Digits, According to First American Data & Analytics Monthly Home Price Index Report
MWN-AI** Summary
According to the latest monthly Home Price Index (HPI) report from First American Data & Analytics, national house price growth has stabilized in low single digits, with a 0.7% increase year-over-year in November 2025 but only a -0.2% change from October. This marks the fourth consecutive month where annual house price appreciation remained below 1%. Chief Economist Mark Fleming highlights that the housing market is adjusting to a new normal characterized by minimal price appreciation and even declines in certain areas.
The report indicates significant disparities in market performance between regions, particularly between Rust Belt markets—like Pittsburgh and St. Louis, where prices have shown resilience—and Sun Belt markets, such as Miami and Denver, where affordability issues have led to price declines. Fleming notes more markets are experiencing annual price decreases than increases among the 30 largest markets tracked, suggesting a widening divide in appreciation levels.
The HPI assesses home prices across three tiers—starter, mid, and luxury—revealing that local market conditions heavily influence price trends, with first-time buyers finding more affordable options in some Midwestern and Northeastern cities. Conversely, markets struggling with high affordability pressures are witnessing declining prices due to increased inventory and strained household budgets.
Overall, the report emphasizes that while current conditions may offer potential buyers some affordability breathing room, the ongoing trends could indicate a more cautious outlook for the housing market as it continues to find equilibrium amid shifting economic factors. The next HPI release is scheduled for January 19, 2026, providing updated insights into these evolving dynamics.
MWN-AI** Analysis
The latest report from First American Data & Analytics highlights a significant stabilization in national house price growth, with annual appreciation hovering below 1% for the fourth consecutive month. As a financial analyst, I recommend closely monitoring these trends, particularly the divergence between market performance in the Rust Belt and Sun Belt regions.
This stabilization indicates that the housing market is adjusting to elevated mortgage rates and affordability constraints. Buyers may find some relief as the pace of price appreciation slows, allowing them to enter the market with slightly better financial conditions. For investors and potential homeowners, this signals a critical moment to weigh options carefully.
In cities like Pittsburgh and St. Louis, where starter tier prices have shown considerable resilience (+12.5% and +5.6%, respectively), there are opportunities to capitalize on relatively affordable entry points. Conversely, in markets like Miami and Denver, declining prices (-4.0% and -3.3% respectively) reflect higher inventory and strained household budgets. This suggests that investors could face challenges in these regions, making prudent choices essential.
As the market continues to evolve, potential buyers should focus on geographic disparities. Prospective homeowners should consider regional market dynamics and prioritize areas with robust job growth and affordable housing stock to mitigate risks associated with declining home values. Additionally, those looking to invest in multifamily properties may want to target areas that support first-time buyers and offer pockets of strong demand, as these regions may yield higher returns.
In conclusion, a strategies focusing on markets with resilient price appreciation while exercising caution in areas with declining values will be crucial in navigating the shifting landscape of the housing market.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
—Local market performance varies widely, with a growing divide in appreciation levels between Rust Belt and Sun Belt markets, 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 November 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 .
November 1 National House Price Index | |
First American Data & Analytics’ National Non-Seasonally Adjusted (NSA) HPI | |
Metric | Change in HPI |
October 2025-November 2025 (month over month) | -0.2 percent |
November 2024-November 2025 (year over year) | +0.7 percent |
Highlights
- Annual house price appreciation remained below 1 percent for the fourth consecutive month in November.
- House price growth reported in last month’s HPI for September 2025 to October 2025 was revised down by -0.1 percentage point from -0.2 percent to -0.3 percent.
“House price growth has stabilized in the low single digits as the market adjusts to a new normal for mortgage rates and a constrained affordability environment,” said Mark Fleming, chief economist at First American. “The new housing market normal is characterized by minimal price appreciation and, in some regions, outright decline. Slower price growth offers buyers a bit of affordability breathing room in near term, and with wage growth exceeding house price growth, affordability is poised to continue slowly improving.”
November 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.
“When it comes to house price appreciation, where the home is matters, as local market performance varies widely. Among the top 30 markets we track, markets with annual price declines outnumber markets with annual price growth,” said Fleming. “Notably, there is a growing divide in price appreciation between markets in the Rust Belt and Sun Belt. In markets where potential first-time buyers can still find relatively affordable homes — including parts of the Midwest and Northeast, such as Pittsburgh and St. Louis — price resilience is more evident. But, in markets where affordability has been stretched, such as Miami and Denver, higher inventory combined with strained household budgets has contributed to falling prices.”
November 2025 First American Data & Analytics Price Tier HPI Highlights | |||
Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Stater Tier HPI | |||
CBSA | Change in Starter Tier HPI | Change in Mid-Tier HPI | Change in Luxury Tier HPI |
Pittsburgh | +12.5 percent | +6.1 percent | +1.7 percent |
Warren, Mich. | +7.6 percent | +3.1 percent | +3.2 percent |
St. Louis | +5.6 percent | +3.0 percent | +0.5 percent |
Cambridge, Mass. | +3.7 percent | +3.7 percent | +0.0 percent |
Newark, N.J. | +3.2 percent | +1.2 percent | +5.5 percent |
Additional November 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 | +6.9 percent |
Warren, Mich. | +5.4 percent |
Newark, N.J. | +3.6 percent |
New York | +3.3 percent |
St. Louis | +2.8 percent |
Core-Based Statistical Areas (CBSAs) with a Year-Over-Year Decrease in HPI | |
Oakland, Calif. | -6.9 percent |
Miami | -4.0 percent |
Denver | -3.3 percent |
Phoenix | -2.9 percent |
Tampa, Fla. | -2.9 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 January 19, 2026.
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 .
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1 The most recent index results are subject to revision as data from more transactions become available.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251218884835/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 First American Corporation FAF plan to address the growing divide in home price appreciation between Rust Belt and Sun Belt markets as highlighted in the November 2025 HPI report?
Considering the minimal price appreciation reported by First American Corporation FAF, what strategies are being implemented to enhance affordability for first-time homebuyers in the constrained market?
With a reported -0.2% month-over-month decline in HPI, what insights can First American Corporation FAF provide on the expected short-term trends in home prices and market stabilization?
In light of the significant year-over-year changes in various markets, how will First American Corporation FAF adapt its data analytics and services to reflect the ongoing fluctuations in the housing market effectively?
**MWN-AI FAQ is based on asking OpenAI questions about First American Corporation (NYSE: FAF).
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