It's a red-hot real estate market — so why are home sales plunging?

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In some neighborhoods, the real estate market is so fierce that many homes are being sold before they even hit the market.

Homebuilders are contending with unprecedented supply chain choke points just as the swelling population of millennials is seeking to transition into larger homes to accommodate families.The number of existing home sales plunged in April, surprising economists who had expected last month’s drop to moderate.

This combination of factors means that last year’s sharp escalation of home prices is set to continue. According to the National Association of Realtors, the median sales price on an existing-single-family home hit a record $334,500 in March. “Suppliers have to take care of their largest customers first,” he said. “The surge in demand that is allowing builders to push price, and putting even more strain on the supply chain as the demand for materials has surged.”

According to Zillow, nearly half of the people who sold homes last month accepted an offer within a week. “As millennials age into the peak years of homeownership, we expect that the demand for housing will be very strong in the coming years,” said Chris Glynn, Zillow’s principal economist.

 

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Suburbs are particularly depressing. Just houses like in this photo and then indoor and outdoor shopping malls. Also neighbours who desperately want to tell you that their son goes to hockey practice.

And way above asking price.

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