Housing Outlook:

Inventory: 18.6 million homes in this country are vacant, more than any other time since the Census Bureau began tracking that figure in the 1960s.

Mortgage: 2.8% of U.S. mortgage loans are now at least three months in arrears, up from 1.4% a year ago. That rate is projected to peak in early 2009.

Home prices: Down 20% nationwide since their peak in July 2006, according to the S&P/Case-Shiller home price index.

NAR’s prediction: Lawrence Yun, chief economist, says he expects prices to rise 2.8% in 2009.

The above conditions affirm that the housing industry has not reached rock bottom and that in the long run, you may stand to lose if you sell your house today.

SELLING: If you feel the urgency to sell, you may do the following:

Banks and builders pose as tougher competition than homeowners selling their house. Both will be willing to radically drop prices to sell a foreclosed or new home to get back their money.

Take advantage of the fact that foreclosed properties are not in ready to move-in condition. To convince buyers that your house is worth paying up for, make sure that it's in move-in condition (foreclosures almost certainly won't be).

Search the internet to see how much are the comparable properties sold or being sold. Once you have the idea of how much they were sold, set your price below that to make it more attractive to buyer and make it sell faster.

BUYING: Look for a bargain and improve your credit score.

Start looking for properties that have been up for sale for at least three months: At that point most sellers will be willing to cut prices to strike a deal.

Drive a hard bargain when you find a house you're interested in. Sellers know you have a lot to choose from. They also know that if they wait they will probably get less. So offer less now.

Lenders are imposing fees or charge higher rates for doesn't fall into the top tier of credit. It is important to boost your credit score and lessen the interest or fees on you mortgage.

A score of 780 to 820 would help you get the best deal while improving your credit score from 660 to just 740 can lower your mortgage rate by a quarter of a point. To improve your score, pay down debt to bring your crucial debt-to-credit ratio down.