A new report from First American Data & Analytics, a division of First American Financial Corporation (NYSE: FAF), showed home price acceleration came to a near halt during 2025.
The company’s December 2025 Home Price Index found a -0.2% change from November to December while last month’s year-over-year difference was a mere 0.5% – the fifth consecutive month where annual house price appreciation remained below 1%.
“From a national house price perspective, it’s almost like 2025 didn’t happen – prices finished the year nearly unchanged,” said Mark Fleming, chief economist at First American. “With annual price growth at 0.5 percent in December—the slowest since 2012—the housing market nationally has found a more balanced state, allowing affordability a chance to gradually improve as household income growth outpaces price appreciation.”
Fleming added, “As we close out the year, the market’s fault line is inventory. Across the top 30 markets we track, prices are flat or declining in 20 markets, and among the 10 markets still posting year-over-year gains, eight are in the Northeast or Midwest—areas where supply has generally remained tighter. Where inventory has grown, particularly in several pandemic-era boom towns like Austin, Texas and Phoenix, prices are adjusting lower as the market normalizes.”
