Obviously everyone on the face of the planet has now realized that the United States housing market is facing a slowdown.

But nobody probably realizes this more than real estate agents themselves, especially those agents who operated in “booming” cities such as San Diego.

Thousands of agents entered the profession just a few years ago when the real estate market was extremely hot throughout most of the United States.

But now, as the market has slowed down completely, many of these real estate agents who earned a lot of money very quickly are now struggling to make ends meet.

A November 19, 2006 article by Emmet Pierce of The San Diego Union Tribune, “From whirlwind to tailspin: Real estate agents are buffeted by a new market,” explains how many agents are finding it tough to adjust to this new slow market, and some are even forced to find new careers.

“After two whirlwind years of million-dollar sales, professional accolades and hefty paydays, real estate agent John Leverson never expected to find himself selling power wheelchairs and scooters to make ends meet.”

“Riding a wave of fast-rising prices and historically low lending rates, the former flight attendant started his real estate career with a bang in 2003. Based in Hillcrest, he sold five high-end homes and won a ‘rookie of the year’ award at his real estate brokerage.”

But now things are looking a bit different for Leverson.  Although he still keeps one listing, he has virtually left the industry completely.

This is the same situation that many real estate agents are now facing; especially those who are inexperienced or just entered the profession a couple of years ago.

These types of people do not necessarily have the clientele or selling skills that are essential to survive as a real estate agent in a slow market.

“Chuck Smiar, president of the North San Diego County Association of Realtors, said times were so good during the price boom that some sellers were able to coast. ‘They saw the fast and easy money,’ he said. ‘The last year or two, when things were going crazy, you didn't have to be a genius to sell anything.’”

“The return to a balanced market, where buyers have room to negotiate, means agents must work much harder, said Kevin Burke, a Del Mar-based agent who teaches real estate law. For many, it has been a rude awakening.”

The main indication that we are in a slow market is the extremely large inventory of homes for sale, with few buyers in sight.

“The California Association of Realtors trade group reports that San Diego County had a 9.8-month supply of unsold, resale single-family houses in September, compared with a 4.7-month supply a year earlier. Statewide, the September supply was 7 months, compared with 3.2 months a year earlier.”

Not only is there a large inventory of homes available on the market, but prices are also dropping as a result. 

As the market becomes more clogged with homes, sellers are forced to lower their prices in order to attract buyers.  “For October, DataQuick Information Systems reported the county's median sales price at $485,000 for all homes, attached and detached, down 5.5 percent from a year ago. The overall median peaked in November 2005 at $518,000. In October, the median price for resale single-family homes dropped 4.5 percent from a year ago to $535,000.”