The Norfolk Real Estate Twilight Zone

I feel like Im in a Real Estate Twilight Zone. 

I have several listings but none of them are getting the traffic they deserve.  I have several buyers that I can not find the right property for.  Its a case of both not enough buyers buying and not enough good inventory at the same time.  On the buyer agent side: I am not talking about picky buyers or overpriced buyers.  I can not find a descent home that will except FHA financing.  I keep running across Bank reos, major fixers, and short sales.  It has been quite depressing.  Yesterday a house came on the market, I met my client when she got off work, showed the home, wrote the offer, and went to fax it and the agent said he had just ratified a contract.  I wanted to die!......  But its like that sometimes.   

Are you in a Real Estate Twilight Zone? What issues are you facing?