Housing market predictions for this year have been all over the map. Given the wide variety of opinions, potential homebuyers and sellers are likely left with more questions than answers.
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To help get to the bottom of the market conundrum, GOBankingRates asked the artificial intelligence (AI) assistant Grok whether the housing market will crash in 2025. Here’s what it said.
Also see four states where home prices are expected to crash in the next 12 months.
Crash Unlikely
When asked about a potential housing market crash in 2025, free AI assistant Grok said it was unlikely. The Elon Musk-backed chatbot provided several key factors for its analysis, including expert predictions of modest market growth, the lack of a predicted recession and robust lending practices that have been put in place since the 2008 crash.
While growth is expected to be slower this year, many experts agree that a complete decline in home prices is not likely. According to Forbes, the potential for a housing market crash in 2025 remains low due to factors like low inventory and homeowners having more equity in their homes.
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Supply and Demand
One of the factors in Grok’s analysis that a housing market crash was probably not on the horizon this year was the fact that housing inventory had still not returned to pre-pandemic levels.
High mortgage rates have kept some buyers sidelined, but stable employment may help to bring them back to the market. When there is low inventory but continued demand, housing prices remain somewhat steady, preventing a rapid decline in home values.
Pricing Trends
Another factor in the AI assistant’s evaluation were home price trends. According to its analysis, modest home price growth is expected in the coming year. Depending on the region, home values are expected to rise between 1.3% and 4.1%. Grok did note, however, that online housing platform Zillow predicted a decline in home values. It noted that the drop is considered a slowdown and not a crash.
In July 2025, Zillow forecast that home values would drop down 2% below where they were at the beginning of the year. The projected decline can likely be attributed to an increase in inventory. Home sales, on the other hand, are expected to exceed 2024 levels, rising 2.5%.
Economic Considerations
A final factor in Grok’s assessment was the economy.
The chatbot noted that no major recession was predicted for 2025. A stable economy helps to bolster consumer confidence and may prevent a sharp decline in housing prices as more buyers return to the market.
Final Thoughts
Overall, Grok’s predictions for a lack of a housing market crash in 2025 are in line with experts’. While some outliers are still projecting a bubble-burst or a boom, most have settled on a bit of status quo for the next six months.
With tighter regulations put in place to prevent a 2008-style crash, it is unlikely that homes could drop to a devastating low in the near future. However, a drop in mortgage interest rates could send buyers in droves to the market, and with somewhat low inventory, sellers could continue to see big returns.
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This article originally appeared on GOBankingRates.com: I Asked Grok Whether the Housing Market Will Crash in 2025: Here’s What It Said
