The National Association of Realtors said the sales rose in South Dakota by 8.9 percent in the fourth quarter of 2007, but sales plunged in some states, especially Nevada, where a recent housing boom collapsed into a 44 percent drop in sales.

In the Las Vegas market, the median price of homes declined 13 percent, USA Today reported.

One real estate agent noted that foreclosures were providing the local correction on overvalued homes. "The lenders have so many foreclosures, they need to get them sold and will take a much lower price than a normal home seller," Rich Cosner of Prudential California Realty told USA Today.

Prices for homes rose in many out-of-the-way city markets, such as Binghamton, N.Y., and Yakima, Wash. In more than 15 cities, the median price for homes declined more than 10 percent. But, 73 city markets reported gains.

"People are relocating here. We have a very low crime rate. We don't have rush-hour traffic," Melanie Prattdimaio in the Cumberland, Md., said to USA Today.