The housing market has encountered a fresh headwind as existing home sales took a tumble in April, declining by 1.9% versus the expected drop of 0.8%. HousingWire Lead Analyst Logan Mohtashami joins Catalysts to discuss the interplay between inventory levels and sales figures.

Mohtashami notes that inventory levels within the housing market have been on a steady upward trajectory. "The positive story is going to be that inventory will be up this year versus what we had in 2023," he says, hinting at the potential for increased supply to alleviate some of the market's pressure. However, Mohtashami highlights the lingering challenges posed by elevated mortgage rates and persistently high housing prices, weighing on the housing market's performance.

"We're not seeing any real growth in sales; we haven't seen it for a while," Mohtashami cautions. "Until mortgage rates head down toward 6% and stay there, it's very hard for this housing market to grow."

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This post was written by Angel Smith