HousingWire Daily Logan Mohtashami: Why didn’t home prices correct with lower home sales?
9 snips
Jan 27, 2025 
Logan Mohtashami, a lead analyst known for his expert commentary on the housing market, dives into the dynamics of existing home sales and prices. He discusses the surprising lack of price corrections despite declining sales, highlighting historical trends and inventory levels. The conversation touches on the baby boomer generation's influence on housing supply, as well as the unexpected resilience of home prices amidst rising mortgage rates. Mohtashami also shares insights into the future of the housing market and demographic shifts affecting homebuyers.
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Inaccurate Forecast
- The 2024 housing forecast was inaccurate due to improving market conditions starting in the summer.
- Forward-looking data and purchase application improvements played a vital role.
Prices vs. Volume
- Despite record low home sales in 2023 and 2024, home prices didn't crash as some experts predicted.
- This contradicts the common belief that prices always follow sales volume.
Silver Tsunami Myth
- The "Silver Tsunami" prediction of a massive supply increase from baby boomers downsizing proved false.
- Active inventory in 2025 is far below predicted levels, contradicting the narrative.