U.S. Home Prices Poised for Multi-Year Decline, Says First American Properties CEO Michael Eisenga

COLUMBUS, Wis., Aug. 25, 2025 (GLOBE NEWSWIRE) -- Michael Eisenga, CEO of First American Properties, has released a detailed and cautionary outlook on the U.S. housing market, forecasting a sustained period of price corrections fueled by a complex mix of economic, structural, and demographic factors.

“Home prices across the nation are entering a prolonged period of downward adjustment,” said Eisenga. “What we’re seeing is not just a temporary slowdown—it’s the beginning of a broader recalibration that could last for years.” Inventory surge: Housing inventory has jumped nearly 30% year-over-year, while transaction volumes have hit record lows during what are typically peak sales seasons, indicating softening demand. Distressed and motivated selling are on the rise. An increasing number of homeowners, including those previously holding out, are now listing their properties amid rising delinquency rates reminiscent of pre-2008 indicators. There are projected home price declines. Short-term forecast: A national average decline of approximately 5% is expected by early 2026 if current conditions persist. Longer-term outlook: Cumulative declines could reach 25–45% over the coming years before the market stabilizes. 2025 market impact: Industry forecasts suggest a broad 9% drop in home prices next year, with certain high-growth regions potentially seeing sharper corrections.

Rising mortgage delinquencies: With rate buydown programs expiring and growing burdens from taxes and insurance, more households face financial strain, pushing some toward foreclosure or urgent sales. Overbuilding and speculative overhang: Markets in Florida, Texas, and parts of California face excessive inventory, worsening the imbalance between supply and demand. Demographic pressures and investor dynamics, aging baby boomers offloading properties, combined with increasing institutional ownership, are reshaping the housing landscape—reducing affordability and traditional entry points for first-time buyers.

Eisenga cautions prospective buyers to exercise patience and conduct thorough due diligence, particularly in overheated markets. “Jumping in too early could expose buyers to immediate negative equity,” he said. If you are going to buy, make a “low ball” offer.

Sellers are urged to adjust expectations, price homes competitively, and prepare for extended time on market. Lenders, especially those newer or undercapitalized, may face mounting challenges amid rising defaults and distressed sales.

Eisenga emphasizes that the U.S. housing market is undergoing a structural correction—not merely a cyclical dip. “This is may not end up being 2008 all over again, but it’s not a soft landing either,” he added. “Stakeholders across the board, whether buying, selling, or lending must remain cautious and prepare for sustained headwinds.”

For investors, developers, and consumers navigating these conditions, First American Properties remains committed to providing grounded market insights and strategic guidance during this evolving cycle.

Media Contact:
First American Properties
Michael Eisenga, CEO
meisenga@firstamericanusa.com
(920) 350-5754

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