Brokerages have paid the price - literally - during the slowdown in the Las Vegas housing market with firms filing for bankruptcy protection and consolidating operations. Many have trimmed the number of agents.

In Business research shows the sales volume for the top 10 brokerages dropped 59 percent from $16 billion in the year ending in June 2006 - the height of the market - to $6.6 billion in the year ending in June 2008.

The top 10 firms sold nearly 44,000 homes two years ago, but sold only about 19,000 homes in the year ending in June. As expected, many firms saw numbers decline, but others increased sales volume through consolidation.

Prudential Americana Group leads the way despite filing for Chapter 11 bankruptcy protection in November, from which it recently emerged. The firm's sales volume went from $4.8 billion two years ago to $1.99 billion in the past year ending in June. Its home closings dropped from 11,371 to 4,878 in that time and the number of agents declined from 1,500 to 1,100.

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Mark Stark, chief executive of Prudential Americana, said the bankruptcy filing will have no effect on the firm's operations, and it is positioned for success because of its experience and name recognition.

Stark said the firm reduced staff and no longer needed an in-house luxury high-rise division.

Because the pie is so much smaller, Stark said it's inevitable there will be fewer brokerages operating in the market. But what's happening to his industry will be felt throughout the business community, he said.

"Vegas as a whole is going through it, whether it is real estate, hotels or widgets," Stark said. "You are going to have to look at how you do business and the good quality players who know their business will succeed. Those who got in when the tide was high will have a difficult time. Many of those will fail."

In second place on this year's In Business list is Realty Executives of Nevada., with $1.55 billion in sales through the end of June, down from $2.51 billion two years ago. The number of home closings has dropped from 6,477 two years ago to 3,717 this year.

At No. 3 is Realty One Group with $880 million in sales, up from $225 million two years ago. It went from 705 sales two years ago to 2,800 this year. The brokerage, which opened in 2005, was still establishing its business two years ago, company officials said.

No. 4 is Century 21 MoneyWorld with $612 million in sales, down from $935 million two years ago, and No. 5 is Coldwell Banker Premier Realty with $505 million in sales, down from $1.1 billion two years ago.

When the market is as challenging as it has been, it's about making adjustments, said Bob Hamrick, the chief executive of Coldwell Banker Premier. More emphasis is on servicing banks and mortgage companies and selling foreclosures, which helps attract buyers, he said.

It's also about streamlining operations and cutting staff that's not needed when the business is slow. That helps a company become more lean and profitable to deal with the slow marketplace, he said. Fortunately, 2008 has been better than 2007, although Hamrick said the fourth quarter traditionally has a slowdown.

"We definitely had a period in 2007 where we were not (profitable)," Hamrick said. "In this type of market to be able to break even is a respectable feat. As an organization, we have been good at putting profits away so that so when we have this kind of market, we can sustain ourselves."

Hamrick said he doesn't think the bankruptcies and consolidations are over, and some brokerages will quietly disappear from the scene.

"It is a sign, I believe, of not the best business management," Hamrick said. "Some companies did not store cash, and when the times were not as good, they couldn't sustain themselves."

No. 6 is Liberty Realty, which has seen the sharpest decline of any brokerage with $451 million in sales, down from $4.5 billion two years ago. It had recorded $2.2 billion in sales between July 2006 and June 2007.

No. 7 is Windermere Real Estate with $275 million in sales. It wasn't listed in the top 10 two years ago.

No. 8 is General Realty Group with $120 million in sales, down from $1.2 billion two years ago, and

No. 9 is RE/MAX Benchmark Realty with $108 million in sales, which didn't make the top 10 two years ago.

No. 10 is Luxury Homes of Las Vegas with $103 million in sales, down from $133 million two years ago but even with last year when it sold 35 fewer homes. The 142 homes the brokerage sold through the end of June had a median price of $725,352, more than $140,000 higher than a year ago.

Luxury Homes broker Ken Lowman said his company simply tried to live up to its namesake and target higher-priced homes, and it paid off. The luxury market was the last segment to be affected by the housing slowdown, he said.

That segment has since slid like the rest of the market has, but Lowman said investments the brokerage made by getting its name out are making a difference in attracting clients.

Lowman said he's even increased marketing expenses, such as print and online advertising and mailing brochures. That means less profits, but it helps hold market share, he said.

"We paid our dues three years ago when we did a lot to get our name out there," Lowman said.

The number of agents used by those firms has fallen from more than 6,900 two years ago to fewer than 5,500 at the end of June, according to In Business research.

That's reflected in the most recent number of licensees reported by the Nevada Real Estate Division. As of June, 25,986 were active license holders, down from 28,763 in June 2007.

The market conditions have affected the number of people entering or staying in the real estate industry, Hamrick said. That means firms like his are spending more time trying to attract experienced agents and providing more training to help them be more productive.

"Although the pieces are getting smaller, less people are participating in the market," Hamrick said. "I think it helps organizations like ours because what you see is a flight to quality from the standpoint of agents and the public."

Many brokerages made a mistake by basing business plans on the market in 2004 and 2005, and those sales rates aren't returning anytime soon, Lowman said.

Home sales have picked up through the first eight months of the year and that has given brokerages hope that the market has reached its bottom. But some have concerns about the slowdown in the economy and postponement of projects such as Echelon and the Summerlin Centre.

"It is not a positive statement, but we know at some point these developments will go forward," Hamrick said.

Lowman said he thinks the housing market is close to its bottom, and the declining prices are a boost to the market because homes are more affordable.

Brian Wargo covers real estate and development for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at 259-4011 or at wargo@lasvegassun.com.