New home sales fell to the lowest point in nearly 18-years last month in this country.

At the same time, the median price of new homes dropped to four-year lows.

Sales of new homes plummeted to 18-year lows last month, and prices for selling homes dropped to the lowest levels since 2004.

So, what's up with the housing downturn?

Nan Pitcher, with Prudential Showcase Properties says, "Gas prices were really high and that affects prices across the board. Plus, a lot of people were waiting to see what happened with the national election, and just a lot of fear of where the economy was going across the board."

Pitcher emphasizes that real estate is local.

According to the Alabama Center for Real Estate, total home sales in Alabama were down nearly 24-percent state-wide in October compared to last year.

However, Dothan faced less of a decline.

"The economic conditions in Dothan are so much better than a large portion of the country,” Pitcher added. “We have a good economic base; unemployment is lower than state and national averages. And, we have a broad economic base."

Pitcher says prices for new homes have come down nationwide because some areas have a lot of foreclosures, which means more competition for new home construction.

But, she says despite struggles in other areas, real estate in Dothan looks like a solid investment even in uncertain times.

"Traditionally, real estate has always appreciated. We have had record breaking years of higher prices so it keeps going up. We have reached a place where it has slowed down a little bit," Pitcher concluded.

Overall year to date, she says average prices for new and existing homes is up two percent in Dothan from last year.

The U.S. Commerce Department says new home sales fell more than five percent last month, which is the lowest level since January 1991.