Another market indicator that tells an accurate story is the Listing Success Rate:

Anything over 90% is extraordinarily high. The market dipped below that level in mid-May and fell rapidly to the 70% level by August. It is now at a level which we would regard as close to the long-term average. Roughly one out of three listings fail to sell. This may not seem normal if you have only been an agent for a few years, but in the long-term it is very much typical of a balanced market. The Greater Phoenix market has experienced long periods where the listing success rate was below 50%, so although market sentiment is poor, the listing success rate is not a reason to feel bad.

A very good reason to feel bad is the volume problem. A balanced market with high volumes is much better than a balanced market with low volumes. Many real estate professionals depend on transaction volume being strong to earn a good living. Right now we have very weak transaction volumes but we have the appropriate number of agents to service a far larger volume of sales. Some agents are going to be very short of work. This also extends to mortgage lenders, title and escrow staff, insurers, property inspectors, home guarantee salespeople and appraisers.

There is just not enough work to go around. Most experienced and successful professionals will continue to prosper but those who have not planned how to deal with the new situation will probably struggle for quite some time.

Market insights provided by the Cromford Report.