# Will the housing market collapse in 2025? Grok gave this answer.

Asked a big question with AI: Will the real estate market collapse this year? Grok, under Elon, gave an unexpectedly stable answer - **unlikely**.

The main logic is as follows:

**Supply Side**: The inventory of housing resources has not yet recovered to pre-epidemic levels, low inventory + sustained demand = stable prices

**Demand Side**: The forecast for this year's housing price increase is between 1.3% and 4.1% (regional differences). Although Zillow predicts a slight decrease of 2%, that is a slowdown rather than a crash.

**Economic Outlook**: No expectation of a major recession, stable employment, consumer confidence remains strong.

The most important thing is that the new regulatory framework after 2008 has controlled leverage, making it unlikely for another catastrophic collapse to occur.

**But here comes the twist**: If interest rates drop, buyers flood in, and with inventory still tight, sellers may still profit.