Home sales in Buffalo Niagara fell 21 percent in November from a year ago, the largest such decline recorded in 2008. A total of 714 homes were sold during the month, the Buffalo Niagara Association of Realtors said. Until November, the largest percentage drop this year was a 13 percent decline recorded in May. While home sales fell sharply, the region's median sale price -- meaning half sold for more than that amount and half sold for less -- increased 21 percent from a year ago to $105,000, BNAR said. The average sale price, more likely to be influenced by the sale of exceptionally high- or low-priced homes, rose 23 percent to $124,977. Statistically, the most popular purchase in November was a three-bedroom home priced between $100,000 and $199,999, according to BNAR data. Fifty-two three-bedroom homes were sold in that price range. Gary Keith, an economist with M&T Bank, said the housing market here is still holding up relatively well compared to elsewhere. "I think November for everybody was a hit-the-wall month," he said, noting a variety of economic indicators had poor showings. James Knight, BNAR's president, said he was unhappy with the double-digit November drop-off. "It's to some degree a cause for concern," he said. But Knight said he was encouraged by the rise in average and median sale prices. "It appears we are still trimming along at the 3 to 4 percent appreciation level," he said. From January through November, the region's home sales were down 7 percent from the same period a year ago. While area home sales are down, the drop has not been as precipitous as in some metro areas that enjoyed more robust gains when the housing market was booming. Keith said the slowdown in the housing market ties into consumer confidence and anxiety over jobs. "People will be cautious until we see some sense that labor markets aren't going to be under a lot of stress," he said. The number of homes on the market in Buffalo Niagara increased 5.4 percent from a year ago, to 5,567. That was the highest inventory for November since 1999. While the inventory was high, the 911 new listings in November was down 7 percent from the same month a year ago. It was the smallest number of new listings for November in six years. Keith said two factors could help give the housing market a boost: The Treasury Department is considering a plan that would involve using Fannie Mae and Freddie Mac to reduce home-loan rates to as low as 4.5 percent, and continued low gasoline prices next year could serve as a stimulus for money-conscious consumers. National Association of Realtors chief economist Lawrence Yun said that the national housing inventory remains very high, at more than 10 months supply. NAR is pushing for financial incentives to help reduce the inventory, which Yun said in turn would stabilize home prices and rein in foreclosures. e-mail: mglynn@buffnews.com