A report from Market Watch. "Sales of newly-constructed homes finally gained momentum after months in the doldrums. One thing that helped boost sales: lower prices. The median price of a home sold in March was $302,700, 9.7% lower than the same period a year ago. At the current pace of sales, it would take 6 months to exhaust available supply."

"For the year to date, sales are running just a hair – 1.7% – stronger than the same period last year. In March, the Commerce Department revised down several prior months’ sales estimates. Rob Dietz, chief economist for the National Association of Home Builders, acknowledges that comparing the current housing economy to the one from two decades ago has some downsides. For one, the population isn’t growing nearly as fast now as back then. Still, the gulf between then and now is stark – and 2018’s anemic pace of construction follows several years of similar underbuilding."

From Wood Business. "The latest data of U.S. new housing starts and of home sales for March 2019 is not encouraging. At a time of year when wood sales would normally be hot, this housing market softness is doing nothing to improve already dropping North America construction framing softwood lumber prices."

"For the week ending April 19, 2019, Western Spruce-Pine-Fir KD 2×4 #2&Btr (RL) FOB sawmill wholesaler prices averaged U.S.$336 mfbm, a decrease of -$12, or -3.5%, from the previous week. This week’s price is -$66, or -16%, less than it was one month ago. Compared to one year ago, prices are down -$220, or -40%."

"In the Pacific Northwest, kiln-dried Douglas-fir lumber purveyors couldn’t believe that they were still waiting for a wave of demand associated with spring construction to occur. Secondary suppliers found some success from day-to-day, but only by selling below sawmill-replacement levels — which all slid another $5 or so themselves. For their part, KD fir producers were in tough when it came to log supply. While low volumes of incoming fibre reduced pressure to sell at increasingly deeper discounts, log quality and especially pricing put them in a definitive pickle."

From KPIX 5 in California. "For the first time in seven years, housing prices have dropped in San Jose, albeit slightly. Gary Shapiro, a senior broker with The Shaprio Group, called the downward trend a 'trickle,' not a sign of a real estate bubble on the verge of bursting."

"Shapiro said the drop in home prices has created a buyer’s market in Silicon Valley. But he also cautioned that the drop is likely only temporary. 'The long-term projection is very positive for this valley,' he said. 'I really feel that the market is just taking a pause and it’ll end up appreciating again in no time.'"

"Dominic Detar said he hopes the decline is only temporary, and that the home that he owns in San Jose continues to climb in value. 'I think it’s exciting,' he said. 'We’re number one in the country, so I think that’s good.'"

The Wall Street Journal. "Compass, a fast-growing residential real estate broker, is still trying to figure out the business. But its free-spending ways are rattling rivals and shaking up the industry. Industry executives say these are programs that many traditional firms can’t afford if they plan to break even. 'It doesn’t make sense,' said Bess Freedman, chief executive of New York brokerage Brown Harris Stevens. 'Are you a charity or are you a real estate company?'"

"The firm is one of a current group of startups that has relied on funding from venture capital to grow rapidly without much concern over profits and with an IPO as the end game. 'Short term profitability is something that many of the more modern companies are not as focused on,' Compass CEO Robert Reffkin said."

"Mr. Reffkin said the company plans to make money through ancillary services like title, mortgage and insurance services, but it’s not clear how. 'We’re not yet at a stage where I have a very clear monetization strategy because we haven’t really talked about it,' said Chief Operating Officer Maëlle Gavet."

"Compass has expanded rapidly through acquisition, including venerable firms like Stribling & Associates in New York and Pacific Union in San Francisco. Jeff Barnett, a manager at Alain Pinel Realtors, a 1,300-agent company recently acquired by Compass in the Bay Area, saw the move as survival. 'Our margins kept getting thinner and thinner,' he said."

"Bigger firms are also feeling the pinch from a weaker housing market and the increasing power of listings aggregators who are driving up fees. Realogy’s net profit sank by 68% in 2018 from a year earlier as it ramped up commission splits and battled a declining luxury market."

"'I definitely keep my eye on competitors who are doing more desperate things and are willing to lose money and don’t seem to have a path to make money,' said Ryan Schneider, Realogy CEO."