I was asked this by a closing agent last week.
He was telling me that business is down by nearly 50%.
He knows that inventory is down, but thought sales were still going to be high.
Speaking only for the area that I work...sales are down, but not because people have quit looking...there are a few of those.
Mostly sales are stifled by the lack of inventory.
When nice home comes on the market and there are 15-20 showing in the first 24 hours and many offers that tells you how short the inventory is.
Yes, some people have quit looking, but only because they want to be moved before school starts.
But the big cause is the lack of people selling.