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The Great House Price Slowdown Continued in June, According to First American Data & Analytics Monthly Home Price Index Report

1. Annual house price growth slows to lowest since March 2012. 2. Price growth for April-May was revised down by 0.2 percentage points. 3. Builder price cuts aim to attract buyers amid rising inventory. 4. First-time buyers face affordability challenges, especially in starter tier. 5. National housing market shows a shift back toward buyers.

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Why Bullish?

Despite slower price growth, revisions indicate a stable trend, potentially attracting investors. Historical examples show that stable markets can encourage investment, as observed post-2008 housing crisis.

How important is it?

The article addresses current housing trends critical for FAF's business; indicates stability amid turbulence. As a key player in the housing market, FAF’s operations may benefit from improved buyer sentiment.

Why Short Term?

The immediate effects are observable through housing market adjustments in next quarters. However, long-term trends remain influenced by broader economic conditions.

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-—Price growth that’s not too hot and not too cold may be just the ‘Goldilocks’ scenario needed to restore balance to the housing market, says Chief Economist Mark Fleming— SANTA ANA, Calif.--(BUSINESS WIRE)--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 June 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.“As inventory builds in certain parts of the country, price cuts serve as a way to entice buyers. Meanwhile, demand still grapples with the weight of affordability constraints. These trends have led to a national house price slowdown."Share June1 National House Price Index Highlights Annual house price appreciation is at the slowest rate since March 2012. House price growth reported in last month’s HPI for April 2025 to May 2025 was revised down by 0.2 percentage points, from +0.4 percent to +0.2 percent. “The great house price slowdown continues with seven consecutive months of annual price deceleration," said Mark Fleming, chief economist at First American. “As inventory builds in certain parts of the country, price cuts serve as a way to entice buyers. Meanwhile, demand still grapples with the weight of affordability constraints. These trends have led to a national house price slowdown—a clear signal that the market is shifting back toward buyers after being so firmly in sellers’ favor during the pandemic years. Yet, it’s important to remember that many potential sellers—especially those who purchased their homes during the pandemic or earlier—continue to benefit from positive, albeit slower, price appreciation. Price growth that’s not too hot and not too cold may be just the ‘Goldilocks’ scenario needed to restore balance to the housing market.” June 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. “The national affordability crunch hits potential first-time home buyers the hardest since they can’t bring cash from an existing home sale to the closing table,” said Fleming. “These first-time buyers typically target the starter home price tier, and in June, prices at this level declined in 14 of the top 30 markets we track. The largest annual declines were in traditionally more expensive markets such as Denver, as well as in relatively more affordable markets like Orlando, Fla. It’s likely that lower prices in these areas will provide buyers a much-needed opportunity to enter the market." June 2025 First American Data & Analytics Price Tier HPI Highlights2 Additional June 2025 First American Data & Analytics HPI Highlights 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 August 18, 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. The company was named one of the 100 Best Workplaces for Innovators by Fast Company for the second consecutive year in 2024. 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 Note: Nassau-County-Suffolk County, NY is excluded from this month’s report due to data disruptions. Cincinnati is included in this month’s report. More News From First American Data & Analytics

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