Sales of existing U.S. homes fell in November, according to the National Association of Realtors, by 8.6 percent to a seasonally adjusted rate of 4.49 million units, a decrease from 4.91 million the previous month. Sales were also off by 10.6 percent from October 2007 figures.

The national median home price also dropped in November, falling to $181,300 from $186,500 in October. The median price one year earlier was $208,700.

The NAR defines existing homes as all previously owned single-family homes, townhouses, condominiums, and co-ops. The group "seasonally adjusts" the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units sold in one year if the current rate were to continue unchanged. unchanged.

Sales Pace by Region

Existing home sales dropped across the board in November, with the Northeast posting the largest month-to-month declines. Sales there sank by 12 percent to 730,000 units, compared with October's 830,000 units. In a year-over-year comparison, sales were down by 18 percent.

The South saw a 10.9 percent decline in sales to 1.64 million homes, with sales falling 17.6 percent since November 2007.

The sales pace in the Midwest fell by 7.4 percent in November from the previous month to 1 million units, and is down 16 percent from last year during the same time.

The West experienced a 4.3 percent monthly drop in sales, but the number of units sold was still up a solid 17.9 percent over last year's figures.

Home Prices

The median home price, the point at which half of all homes are sold for more and half are sold for less, decreased in November for the sixth consecutive month, led by another significant price slide in the West.

The median price for homes in the Western United States fell to $242,500, down from $258,900 in October. The current price represents a 25.5 percent decrease from November 2007.

The Midwest median sales price dropped by another $3,000 and is down by 11.2 percent on a year-over-year basis.

The median price in the South fell to $154,500 from $160,800 in October. Compared with one year earlier, the price was down 10.6 percent.

In the Northeast, median home prices fell to $257,700 in November from $241,800 the previous month. Prices were down.01 percent versus last year when median prices were at $257,900.

September was a month full of chaos in the mortgage and housing markets. Looming failure of Wall Street titans like Lehman Brothers and AIG, buyouts of troubled banks like Washington Mutual and Wachovia, and talks of federal government intervention made interest rates unpredictable for potential homebuyers. With ARM loan interest rates continuing to adjust upward, and energy and food costs remaining high, borrowers by the hundreds of thousands forced to enter foreclosure. In fact, according to the Mortgage Bankers Association, 40 percent of all subprime ARM loans in the U.S. were in some stage of foreclosure or default in September, with 12 percent of all prime ARM loans falling into the same category.

Widespread foreclosures create numerous problems for both individual neighborhoods and for the country as a whole. Obviously, on a national level, soured loans have cost companies millions of dollars and in some cases, their very existence. On a local scale, abandoned foreclosed properties that fall into disrepair are magnets for vagrants and criminal activity. Nearby homes also fall in value as foreclosed homes make the neighborhood less desirable to live in.

Millions more of American homeowners are expected to fall into foreclosure during the next few years. In some cases, there may be no way to save their home. Yet in many other cases, homeowners can avoid foreclosure by talking with their lenders and possibly taking advantage of new federal programs.

Talk to Your Lender

The first step to avoiding default and foreclosure is to approach your lender and tell him of your situation. If your ability to keep up with your payments is lagging, talk to your mortgage lender before you actually have to make a late payment. Foreclosure means a huge loss of money for lenders, plus a lot of hassle to resell the property. Many would rather renegotiate the terms with you and possibly even write-down your mortgage balance a bit, instead of losing out completely on their investment when you default.

HOPE for Homeowners

In addition to early programs for struggling homeowners, the federal government started a new initiative in early on October 1, called HOPE for Homeowners, which could save as many as 400,000 American mortgage borrowers.

The program authorizes the Federal Housing Authority to back more adjustable rate mortgage (ARM) loans in danger of failure. It works like this: a worried homeowner contacts a HOPE representative. The representative works with the lender and voluntarily gets them to agree to write down the loan balance to 90 percent of the current value of the home. Then, they refinance the original mortgage into an FHA-guaranteed 30-year fixed rate mortgage with predictable monthly payments. As the value of the home appreciates in the future, the homeowner agrees to share some of that equity with the government.

In order to qualify for this program, borrowers must be able to fully document their income, occupy the property involved (no investment properties will qualify) and their housing costs after the refinance must total no more than 31 percent of their income (38 percent if they participate and in a 3-month trial period with timely payments.)

2. Invest a few hours for future dividends
Here's your chance to clean up in real estate. Tidy the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor touch-ups and redecorating. Real estate sellers can benefit from updating the hardware on kitchen cabinets, adding new slipcovers to sofas and keeping a vase of fresh flowers in the entryway. These are some of the simple touches that can go a long way. If you're worried about time, hire professional cleaners or painters to help get your house ready. Remember, prospects would rather see how great the real estate seller's home really looks than hear how great it could look "with a little work."

3. Check faucets and bulbs
Dripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned-out bulbs or faulty wiring leave prospects in the dark. Don't let those problems detract from what's right with your home.

4. Don't shut out a sale
If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect's mind. Don't try to explain away sticky situations when you can easily plane them away. A little effort on the real estate seller's part can smooth the way toward a closing.

5. Think safety
Real estate sellers learn to live with all kinds of self-set booby traps: roller blades on the stairs, festooned extension cords, slippery throw rugs and low-hanging overhead lights. Make your residence as safe as possible for visitors.

6. Make room for space
Remember, potential buyers are looking for more than just comfortable living space. They're looking for storage space, too. Real estate sellers should make sure attics and basements are clean and free of unnecessary items.

7. Consider your closets
The better organized a closet, the larger it appears. Now's the time to box up those unwanted clothes and donate them to charity.

8. Make your bathroom sparkle
Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, real estate sellers should display the best towels, mats and shower curtains.

9. Create dream bedrooms
Wake up prospects to the cozy comforts of your bedrooms. For a specious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must if real estate sellers want buyers to be able to imagine relaxing there.

10. Open up in the daytime
Let the sun shine in! Real estate sellers should pull back curtains and drapes so that prospects can see how bright and cheery the home is.

11. Lighten up at night
Turn on the excitement buy turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.

12. Avoid crowded scenes
Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Real estate sellers should keep the company present to a minimum.

13. Watch your pets
Dogs and cars are great companions, but not when real estate sellers are showing their homes. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty or Spot outside, or at least out of the way.

14. Think volume
Rock-and-roll will never die. But it might kill a real estate transaction. When it's time for a real estate seller to show the home, it's time to turn down the stereo or TV.

15. Relax
It's best if you're not there when your home is being shown. However if that's not possible, be friendly - but it's not necessary to force conversation. Prospects want to view the home with minimal distraction from the real estate seller.

16. Don't apologize
No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced RE/MAX Associate handle the situation.

17. Keep a low profile
Nobody knows a home better than the real estate seller. But Sales Associates know buyers - what they need and what they want. Your Associate will have an easier time articulating the virtues of your home if you stay in the background.

18. Don't turn your home into a second-hand store
When prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.

19. Defer to experience
It's the experience when prospective buyers want to talk price, terms or other real estate matters, let them speak to an expert - your Sales Associate. As the real estate seller, you might feel tempted to weigh in, but your two cents could cost you much more.

20. Help your agent
Associates have an easier time selling homes if showings are scheduled through their offices. And real estate sellers appreciate the results.