First American Data & Analytics, a division of First American Financial Corporation, released its July 2025 Home Price Index (HPI) report, revealing a steadily cooling national housing market marked by an eighth consecutive month of slowed annual home price growth.
The report, which tracks home price changes less than four weeks behind real time, provides data at national, state, and metropolitan levels, including price tiers segmented into starter, mid, and luxury categories. Nationally, the HPI indicated a -0.2 percent month-over-month change from June 2025 to July 2025, with a +1.5 percent year-over-year change from July 2024 to July 2025. In the Los Angeles-Long Beach-Glendale market, the HPI saw a -0.1 percent month-over-month change and a -0.3 percent year-over-year change.
Mark Fleming, chief economist at First American, stated, “It’s back to reality for national house price appreciation, as limited affordability, economic uncertainty and homeowners unwilling to enter the market and give up their low mortgage rates hinder demand amid a growing inventory of listings.” He added, “This supply-demand dynamic slowed annual home price growth nationally for the eighth straight month in July. National prices are now just 0.3 percent from their recent peak in May. A window has opened for incomes to outpace price growth and affordability to improve, a positive for buyers looking for an opportunity. Overall, it’s a reflection of a steadily cooling housing market, following the white-hot pandemic-era market fueled by record-low mortgage rates.”
The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers: starter (bottom third of market price distribution), mid-tier (middle third), and luxury (top third). For the Los Angeles-Long Beach-Glendale metro area from July 2024 to July 2025, the starter tier experienced a -0.7% change, the mid-tier a -0.2% change, and the luxury tier a +3.0% change.
Fleming also noted, “Regional divergence remains a defining feature of the housing market. Eight of the 10 metros with the strongest annual price growth are in the Northeast or Midwest, while the weakest performers are in the West and South. Whether a market is gradually shifting towards a buyer’s market or remains firmly in sellers’ market territory depends on which side of the local supply-demand tug-of-war is gaining momentum.”
Highlights from the July 2025 report include Core-Based Statistical Areas (CBSAs) with the greatest year-over-year increases in Starter Tier HPI: Pittsburgh (+8.7 percent), Cambridge, Mass. (+3.4 percent), Charlotte, N.
C. (+2.9 percent), Warren, Mich. (+2.8 percent), and Atlanta (+2.0 percent). CBSAs with the greatest overall year-over-year HPI increases include Pittsburgh (+4.9 percent), New York (+4.4 percent), Cambridge, Mass. (+3.9 percent), Warren, Mich. (+2.6 percent), and Minneapolis (+2.6 percent).
Conversely, several CBSAs experienced year-over-year decreases in HPI: Oakland, Calif. (-5.8 percent), Tampa, Fla. (-3.9 percent), Austin, Texas (-3.6 percent), Orlando, Fla. (-2.7 percent), and Phoenix (-2.6 percent).
The HPI report measures single-family home prices, including distressed sales, using a repeat-sales methodology that tracks price changes for the same property over time, utilizing over 46 million paired transactions. In non-disclosure states, the HPI combines public sales records, MLS data, and appraisal data. The next HPI release is scheduled for the week of September 15, 2025.
First American Data & Analytics, based in Santa Ana, California, is a national provider of property-centric information, risk management, and valuation solutions. It maintains an extensive property and ownership dataset with over 8.6 billion document images. The division is part of First American Financial Corporation, a provider of title, settlement, and risk solutions for real estate transactions, which reported total revenue of $6.1 billion in 2024.
