The New York realtors have their December numbers out. "The New York housing market continued to slow down as the year drew to a close with sales falling 19.2 percent in December 2006 compared to the same time period in 2005. The statewide median selling price dropped 14.2 percent in December 2006 compared to December 2005."

"'Clearly, there was no 'bursting bubble' in the New York housing market in 2006,' said Charles M. Staro, NYSAR chief executive officer. 'The market stabilized as expected in 2006 with a slowdown in sales price and a return to balance between buyers and sellers.'"

The Star Ledger from New Jersey. "In December, contract-sales activity ran 2 percent higher than December 2005, 'providing solid evidence that home buyers are begin ning to re-enter the housing market in response to lower home prices and continued low mortgage interest rates,' the Otteau Valuation Group said."

"Still, not all is well on the housing front. Indeed, a key indicator of market strength is the Unsold Inventory Index, which currently stands at a 10.6 months, as compared with 7.8 months one year ago, 'which far exceeds the balance point at which home prices will rise,' the Otteau Valuation Group said."

"'Therefore, while recent market improvements may signal the end of the housing decline, it should not yet be interpreted as a return to higher prices,' the report said."

"'Keep in mind that these improvements have been fueled pri marily by lower home prices suggesting that Right-Pricing! remains the key to successful home marketing,' he said."

The Eagle Tribune reports from Massachusetts. "The number of homeowners who lost their homes to foreclosure reached a 10-year high in Rockingham County last year."

"More than 250 homes were seized in the county's 38 towns in 2006, almost triple the number of foreclosures in 2005, according to Cathy Stacey, Rockingham County Registrar of Deeds. Officials blame popular 'exotic mortgage offers' for the growing number of foreclosures in the most expensive housing market in the state."

"Stacey said 253 homes were foreclosed in the county last year, but that doesn't include hundreds of homes that are at risk of foreclosure or petitioned for foreclosure. State officials said they don't know the number of petitions filed by mortgage companies last year, but they do know the list is growing."

"In Massachusetts, state mortgage lenders reported there were 18,926 petitions to foreclose on homeowners last year, compared to 11,155 in 2005."

"Granite State officials said there is not one particular demographic that is highest at risk of foreclosure. Rather, it's those who take out mortgages they know exceed their ability to pay, but they find lenders willing to grant them anyway."

"Other homeowners were investors who may take out a balloon loan. The idea is to resell the home before the balance is due. 'But that doesn't always happen,' said Jane Law, spokeswoman for the New Hampshire Housing Financing Authority. 'If you've taken out a balloon (loan) and you're in the home for five years and haven't moved out, it's going to catch up to you.'"

"The majority of homes that are foreclosed on belong to homeowners who take out adjustable rate mortgages, according to James Kenney, president of a foreclosure notification service. When the interest rates go up, they're required to pay anywhere from $300 to $500 more each month, Kenney said."

"'Sometimes, even an increase of a percentage point (in interest rates) can kill people,' Law said. 'Especially if you're in the end of the market price you can afford; it can make all of the difference.'"

"Stacey said it often breaks her heart to see foreclosures, but other times she wishes prospective buyers would just smarten up. 'Quite honestly, people need to learn to say no, but (lenders) make it so hard,' she said. 'It's just like people getting inundated with credit cards - something needs to change because we're a growing nation of debt.'"