First American reports positive momentum growing
First American’s latest Existing-Home Sales Outlook Report shows that home affordability is improving as income growth outpaces home price gains, based on the most recent existing-home sales in November 2025. This positive momentum suggests that the housing market is slowly thawing.
According to the latest Real House Price Index (RHPI), affordability improved to its highest level in over three years. House price appreciation has dipped below the pace of income growth since April 2025, which is slowly improving the monthly-payment math for potential buyers and helping more households qualify at the margin. Inventory has also improved, giving buyers more options than last year.
“Looking ahead, the most realistic expectation is continued, incremental progress, not a breakout,” said Odeta Kushi from First American. “You can’t buy what’s not for sale, so cautious optimism for 2026 hinges on a rising tide of more ‘For Sale’ signs helping spur a few more sales.”
