The latest report from the National Association of Realtors shows that most states are seeing sales activity below that of last year.

Total existing-home sales were down 12.7 for the national average in the third quarter, though the rate was still the second highest on record.

David Lereah, NAR's chief economist, noted, "Last year we had a record sales market and historically tight supplies of homes with buyers bidding over the asking price. With the market in full transition, buyers now have choices and sellers are more willing to negotiate -- under these circumstances it's no surprise that overall home prices are slightly below a year ago. We expect this trend to continue in the months ahead, but we'll see modest appreciation in most of the country in 2007."

This is good news for buyers in many metro areas, which are still seeing high prices. The biggest jump in prices (third quarter) was seen in Salem, Oregon, where year to year prices jumped 24.7 percent, bringing prices to $228,000.

The most expensive market? The San Fransisco-Oakland-Fremont area, with a median price of $749,400.

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