The quarterly report on total state existing-home sales shows that the seasonally adjusted annual rate was 6.69 million units in the second quarter, down seven percent from the record 7.19 million-unit level in the second quarter of 2005.

The biggest increase was in Alaska, where existing home sales rose 48.6 percent from the second quarter of 2005. In Arkansas the first-quarter resale pace rose 17.9 percent from a year earlier, while Texas experienced the third strongest gain, up 11.3 percent. Twenty-eight states and the District of Columbia experienced declines.

?EUR??,,????'??When you look at states with high housing costs or that have experienced a prolonged period of rapid price gains, you typically see slower home sales,?EUR??,,????'?? David Lereah, NAR?EUR??,,????'???s chief economist said. ?EUR??,,????'??By contrast, states with moderately priced areas that have experienced healthy job creation are seeing sales gains ?EUR??,,????'??? the economic backdrop remains favorable for the housing market, which is helping home sales to level out.?EUR??,,????'??

Regionally, the South reported an existing home sales pace of 2.60 million units in the second quarter, down 4.2 percent from a year ago. After Arkansas and Texas, the next strongest increase in the South was in North Carolina, up 11 percent from the second quarter of 2005, while resales in South Carolina rose 9.0 percent; six other Southern states also posted sales gains.

In the Midwest, existing home sales declined 4.7 percent to a 1.54 million-unit annual sales level from the second quarter of 2005. The strongest increase in the region was in Indiana, up 4.8 percent from a year earlier, followed by Iowa, up 3.8 percent, and Missouri, with an increase of 0.8 percent.

The Northeast saw an existing home sales pace of 1.15 million units in the second quarter, which was 5.2 percent below a year earlier. Sales activity in Vermont rose 9.1 percent from the second quarter of 2005, while Maine increased 1.5 percent.