This is but one of the many ways that Realtors’ production volumes will be impacted – downward.I’ve noted the following letter before but feel it’s warranted to revisit – This is but one of the reasons for the shift enumerated in this letter (h/t Blown Mortgage), including but not limited to this:The key reason the Subprime problem exists as it does today has to do with the wanton disassociation of risk inherent in the machine that churns out Subprime loans….  Just think about it…if you were a 20-something making mortgage loans in California using someone else’s balance sheet and being paid per loan (with no lookback to performance of the loan), how many dubious loans would you underwrite?The above is going to change….  Non-scientifically, what will happen to the local market if 20 percent of all buyers are removed from the market?My prediction is that there will be at least a 15%-20% decline in the Realtor membership next year; (the agent bubble may be bursting) might there be a correlation between the reduction in Realtors and buyers that will lead to equilibrium?…  A good blog works about as well as anything.What if we replaced “company” with “industry”?The real estate industry – and real estate blogs – may very well be in working their ways through the de-commodification phase of their respective evolutions.

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