New homes are not the only thing out there suffering deflationary pressure. Have you looked at the price of a salesperson? A year or two ago, salespeople were offered sweet compensation packages to change companies. I would hear about guaranteed pay bases of $100,000 and $200,000. Now, these same salespeople face termination of salaries in exchange for a commission-only pay scale, often accompanied by the elimination of benefits such as health insurance and 401(k). Worse yet, even commission-only salespeople are getting released if their numbers are low.
