As investors navigate through this time, they’re likely to encounter some shifts in housing preferences and priorities. Factors such as remote work trends may lead to increased demand for properties with dedicated home office spaces or located in suburban areas. Conversely, there might be decreased interest in certain urban properties due to concerns about population density or lifestyle changes.

The supply and demand imbalances highlights a potential challenge for the market. If the projected number of houses for sale doesn’t match actual demand, it could affect pricing and market dynamics, impacting both buyers and sellers.

Despite the initial surge, the market is expected to stabilize around 1.5 to 1.6 million houses. This suggests that over time, the market will adjust to better match supply with demand. Economic conditions, interest rates, and government policies will all influence this process as stakeholders navigate the real estate landscape in 2025.