The Press Democrat reports from California. "Home prices fell more sharply in Sonoma County last month than anywhere else in the Bay Area, except Solano County, according to a report issued Thursday. In Sonoma County, prices have dropped 7.7 percent to a median of $530,000, while sales have declined 22.5 percent, according to DataQuick."

"Steve Cochrane, an analyst with Moody's Economy.com who tracks Sonoma County's economy, said he wasn't surprised by Sonoma County's drop. 'I've always felt the Sonoma County housing market was at fairly considerable risk,' he said. 'It seems like Sonoma County is one of the weakest economies in the Bay Area. There's hardly any job growth to speak of. That's essentially the basic building block of the economy,' Cochrane said."

"The county has lost 3,100 jobs over the past year, putting the brakes on what had been a sluggish economic recovery from a recession that was longer and deeper than expected."

"There is still a glut of homes available. 'We haven't seen any falling off of the inventory, hardly any at all,' said Mike Kelly, an agent in Santa Rosa."

The Contra Costa Times. "The typical monthly mortgage payment for Bay Area buyers was $2,865 last month. That was down from $2,921 for November a year ago. Adjusted for inflation, mortgage payments are 12.9 percent higher than they were at the peak of the prior cycle in early 1990."

"Paul Ward, a broker associate in Danville, said he thinks the lower payments have to do with the average buyer believing less is more. 'While last year was 'Get as much as you can,' people are definitely more cautious these days,' he said. 'They don't mind buying a smaller home ... and don't want to spread themselves too thin.'"

The Sacramento Bee. "Analysts called it the slowest November in nine years in Sacramento and Placer counties. Reports show that many sellers have pulled their homes off the market, greatly reducing resale inventory."

"November's sales pushed the overall total of new and existing homes and condominiums closing escrow in 2006 to 38,208 in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties, reported DataQuick. That's 16,129 fewer sales than last year, a factor that has purged area payrolls this year of countless real estate agents, loan specialists and residential construction workers."

"The median price of a single-family detached resale home declined to $345,000, the lowest since March 2005, according to DataQuick. Placer County's $442,500 median sales price for an existing detached home remains 12.2 percent lower than its peak of $504,000 in Aug. 2005."

"While many sellers have given up for the year, others are quietly seeking appraisals to determine an appropriate asking price that will move their home quickly, said Sacramento appraiser Rebecca Ballew. 'I've had three calls in the last week to do appraisals before they put their house on the market,' Ballew said. 'They want an idea of where to put it so it doesn't sit there.'"

The Times Standard. "The housing boom that hit the North Coast and pumped up housing prices locally and around the country has thrown a wrench in the old buying and appreciation formulas. Now, economists and others in the industry are asking themselves whether it really is better to rent a home, duplex or townhouse at the moment rather than buy."

"Erick Eschker, Humboldt State University economics professor, said that for the first time in a long time, renting may be the wiser option."

"'I don't think we've ever seen it this bad here. Not since the Great Depression has there been such a difference between (rents and mortgages),' Eschker said. 'I would be a fool to purchase a house right now, unless I could find a house at the pre-boom prices. I think we are in trouble and I'm not going to lie about it.'"

"Rents for duplexes, townhouses and homes with two, three and four bedrooms have been averaging between $1,100 and $1,200, Eschker said. According to the latest affordability release from the Humboldt Association of Realtors, the Humboldt County median house price went up in October to $325,000 from a September median of $306,000. The average mortgage rate on the October median-priced home was $2,009.89."

"Arcata appraiser Jon Brooks said he has seen a mild correction in the real estate market of around 10 percent in the past year. However, Brooks said that until just recently rent prices were much higher."

"'This is the law of supply and demand. When housing prices go up, builders want to build apartments and create subdivisions, and we've just experienced a substantial increase in inventory,' Brooks said, explaining increased competition as being the real reason for drops in rent."

"Ming Tree GMAC Real Estate owner Larry Doss said he does agree with Eshker on one point. 'I agree with the rent versus home-cost argument. It doesn't make sense from an investment standpoint right now,' Doss said."

"One concern Doss and others in the business have is the huge run on negative amortization mortgages. These offer ridiculous teaser rates with low or no down payment and small mortgage rates, but requiring a big balloon payment a few years down the road."

"Humboldt County has seen a large increase in the past few months in home foreclosures, and Eshker said that as interest rates rise, that rate is only going to continue. Doss said he is expecting some changes in the availability of negative amortization loans on the national policy level, and said he hopes to see them come sooner rather than later."

"'Many in the mortgage industry categorize these as irresponsible, and Doss said that it goes back to the old saying, 'If it sounds too good to be true, it probably is.'"