A slump in America’s housing market deepened in November, as buyers shunned both new and previously owned homes. At the same time, the median prices for houses posted their steepest monthly drop in four decades, according to reports released Tuesday.

Sales of existing homes declined 8.6 percent last month, to a seasonally adjusted rate of 4.49 million, according to the National Association of Realtors. The median price of a home plunged 13 percent from October to November, to $181,300 from $208,000 a year ago. That was the lowest price since February 2004.

Lawrence Yun, chief economist of the National Association of Realtors, said that 45 percent of all home sales were so-called “distressed sales,” meaning that the sellers faced foreclosure, or they were forced to sell their home for less than the value of the mortgage.

The numbers released Tuesday show that the housing market, which is at the center of America’s financial crisis, is displaying no signs of a quick recovery.

“They’re about as god-awful as they can get,” said Robert Barbera, chief economist at ITG. “This is pretty breathtaking stuff.”

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With housing prices crashing in the U.S., homebuying trips to America are becoming one of the more popular tour-group packages in China.

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Troubled German lender Hypo Real Estate Holding AG on Saturday announced plans to cut about 1,000 jobs, more than half its current work force, by 2013 as it cuts costs following a government-backed rescue.

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Reuters - With the $500 of monthly savings Jim Hennessy of San Diego gained by cutting the rate on his $417,000 mortgage, he plans to rebuild his beaten-up retirement account and maybe even take a cruise.

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AP - Roland “Rollie” Walker, the owner of southern Utah’s largest incomplete subdivision, is being forced to sell the trees to keep his project afloat. Creditors are posting foreclosure notices on his land, and banks are refusing to loan him money.

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As foreclosures and layoffs force families out of their homes, school districts across the nation are struggling to deal with a dramatic influx of homeless children.

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Reuters - Bond fund Pacific Investment Management (Pimco) has turned down a debt-exchange offer from GMAC LLC, threatening the auto and mortgage finance company’s bid to qualify for U.S. government funds, the Wall Street Journal reported.

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AP - Diane Shackle found it gut-wrenching to walk away from a mortgage she took out in times that were better for both her and the U.S. economy.

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