{"id":15565,"date":"2025-08-12T16:34:40","date_gmt":"2025-08-12T21:34:40","guid":{"rendered":"https:\/\/1reason.com\/re\/first-american-properties-ceo-michael-eisenga-issues-statement-on-june-housing-market-trends-momentum-shifting-toward-buyers-amid-unusual-mid-year-softness\/15565\/"},"modified":"2025-08-13T11:34:40","modified_gmt":"2025-08-13T16:34:40","slug":"first-american-properties-ceo-michael-eisenga-issues-statement-on-june-housing-market-trends-momentum-shifting-toward-buyers-amid-unusual-mid-year-softness","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/first-american-properties-ceo-michael-eisenga-issues-statement-on-june-housing-market-trends-momentum-shifting-toward-buyers-amid-unusual-mid-year-softness\/15565\/","title":{"rendered":"First American Properties CEO Michael Eisenga Issues Statement on June Housing Market Trends: \u201cMomentum Shifting Toward Buyers Amid Unusual Mid-Year Softness\u201d"},"content":{"rendered":"
housing sector for the month of June. Citing a confluence of weakening price trends, rising inventory, and a pullback in single-family home construction, Eisenga emphasized that the second half of 2025 may mark a structural shift in market dynamics\u2014offering buyers more leverage than at any point in the past two years. <\/p>\n

\u201cThe June data reveal a market under pressure from multiple directions. Aggregate home prices for M3 cities declined by -0.77% from May to June\u2014a move without historical precedent in the National Association of Realtors (NAR) series going back to 1999,\u201d said Eisenga. \u201cThis rare mid-year decline suggests a recalibration in price expectations, even as broader fundamentals remain constrained by affordability challenges and supply imbalances.\u201d<\/p>\n

Using Redfin data, Eisenga noted that home sales in M3 cities were up 5.72% year-over-year, a modest sign of demand resilience, even as month-over-month sales declined by 2.20%. The median home price rose 0.82% YoY, but also declined 0.77% MoM, further reinforcing the trend of price moderation in the face of increasing inventory and buyer hesitation.<\/p>\n

In the mortgage space, headline delinquency rates for FHA loans in the GNMA II portfolio\u2014representing approximately 6.9 to 8 million FHA loans\u2014jumped from 9.96% in May to 10.67% in June, according to an analysis by John Comiskey. Serious delinquencies ticked upward as well, from 3.21% to 3.32%, raising early warning signals for potential stress in lower-income segments.<\/p>\n

New Construction: Inventory Surges, Builders Pivot. Data from the Census Bureau showed June new-home sales rose modestly by 0.6% to a seasonally adjusted annual rate of 627,000 units, though still 6.6% below year-ago levels and short of expectations (650K). Most notably, new-home inventory surged to 511,000 units, the highest since October 2007, translating to a 9.8-month supply.<\/p>\n

\u201cA nearly 10-month supply is a flashing red light for homebuilders,\u201d Eisenga said. \u201cIt\u2019s putting real pressure on prices and forcing aggressive discounting.\u201d<\/p>\n

The median new-home price declined 2.9% YoY to $401,800, as builders offered the most widespread discounts since 2022. According to NAHB data, 38% of builders cut prices (by an average of 5%), and 62% offered incentives, including rate buydowns and closing cost assistance.<\/p>\n

Although total housing starts rose 4.6% to 1.32 million units, the increase was driven primarily by multifamily projects. Meanwhile, single-family housing starts fell to an 11-month low, and building permits declined to their lowest level in over two years. These trends underscore a broader pullback in traditional residential development, largely due to elevated mortgage rates (~7%) and high construction costs.<\/p>\n

Existing Home Market: Inventory Rising, Sentiment is Depressed. In the resale market, existing-home inventory surged nearly 29% YoY, reaching post-pandemic highs, though still about 13% below pre-COVID norms. Homes are sitting on the market longer, with the median listing duration rising to approximately 53 days. Price growth has essentially stalled, up just 0.2% YoY, pointing to a slowly normalizing market environment.<\/p>\n

Yet, consumer sentiment remains tepid. Only 28% of surveyed buyers believe now is a good time to buy, despite greater selection and softening prices.<\/p>\n

Eisenga concluded with a candid outlook:<\/p>\n