Housing Slump Hits Big in Some States

Sales in California and other once-hot markets tumble more than 20%, thanks to rising home values and interest rates

The housing market turned in one of its worst performances in years, with existing-home sales falling 7%, to an annual rate of 6.7 million in the second quarter, according to data released on Aug. 15 by the National Association of Realtors. The results show a clear bifurcation in the market. States that had seen a big run-up in home prices are experiencing the most dramatics sales declines, while markets with strong economies and lower-cost housing are still seeing sales increases.

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