COLUMBUS, Wis., Dec. 22, 2025 (GLOBE NEWSWIRE) — “2025 has been a pivotal year for the U.S. economy and housing market,” stated Eisenga. “While headwinds accelerate, recent data reveal both challenges and opportunities for buyers, sellers, Investors and the broader real estate industry.”
Consumer and business financial stress intensified in 2025, with bankruptcy filings rising significantly year-over-year. Through late November, total bankruptcy filings surpassed 500,000 cases, representing an 11% increase compared with the same period in 2024. Notably, Chapter 7 “liquidation” filings increased sharply, while business (Chapter 11) filings also climbed, marking ongoing credit pressures across sectors. Eisenga observed, “Elevated bankruptcies underscore the real economic pressures many households and small businesses face—underscoring the importance of fiscal stability and employment support as we move into the new year.”
Despite affordability constraints, existing home sales edged higher in November 2025, rising 0.5% from the prior month to an annual rate of about 4.13 million units. However, sales remained slightly below year-ago levels, reflecting continued caution among buyers. Home prices continued to set new records, with the median sales price climbing above $400,000, showing persistent valuation strength.
At the same time, housing inventory remains constrained, with roughly 1.43 million unsold homes available — near historically low supply levels. Tight inventory dynamics helped sustain prices even as mortgage rates modestly eased late in the year. Eisenga commented, “The inventory-constrained environment continues to reward sellers but poses affordability challenges for many buyers. I expect inventories to grow in early 2026 as we move into the Spring selling season. Buyers are wise to put purchase plans on hold as 2026 looks to be the year of some drastic price reductions in home prices. Overall, I expect the housing market on a national average to fall a round 35% from the highs set in 2022 over the next 3 to 5 years.”
At its December 2025 meeting, the Federal Reserve cut the federal funds rate by 25 basis points to a target range of 3.50%–3.75%, marking the third consecutive rate reduction this year. The Federal Open Market Committee highlighted elevated economic uncertainty and slowdowns in employment growth as rationale for easing, while signaling cautious forward guidance. Eisenga reflected, “The Fed’s rate reductions aim to support economic growth and housing demand, yet markets remain sensitive to labor conditions, inflation trends, and credit dynamics. As we enter 2026, interest rate expectations will play a key role in buyer confidence and transaction activity. “Additionally, the Federal Reserve’s decision to restart short-term Treasury purchases has been widely interpreted as a response to growing liquidity strains in financial markets. While officials avoided labeling the action as quantitative easing, the move reflected concern over tightening funding conditions, declining reserves, and stress in money markets that could disrupt normal market functioning. The urgency and focus on short-dated Treasuries signaled the Fed’s priority to stabilize liquidity quickly and prevent broader financial contagion, underscoring how sensitive the system has become to even modest reserve shortages despite years of post-crisis safeguards,” Eisenga concluded.
“Real estate never moves in isolation from the broader economy,” Eisenga concluded. “With thoughtful strategy and data-driven insight, First American Properties remains focused on delivering value and stability for our clients and communities in 2026 and beyond.”
Media Contact:
First American Properties
Michael Eisenga, CEO
meisenga@firstamericanusa.com
(920) 350-5754
About First American Properties
First American Properties is a privately held investment and real estate management firm headquartered in Columbus, Wisconsin. The firm specializes in strategic asset acquisition, development, and portfolio management across diverse sectors of the U.S. economy.
Disclaimer: This press release is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties.
