Topic: Market Commentary

Fannie Mae has instituted a new REO (Real Estate-Owned) home sales program called “First Look.” This program bars investors from bidding on these properties for the first 15 days, thus granting home buyers who plan to personally occupy the home a “First Look.” Fannie Mae controls thousands of these REO properties, which are repossessed houses that Fannie sells through real estate brokers.

Good news for those who weren’t able to take advantage of the $8,000 first-time homebuyer’s tax credit: it’s being extended! The program was scheduled to end this month; however, President Obama recently signed a bill to extend the program through June 2010.

NAR's July data for existing home sales was encouraging.  The annualized rate increased from 4.9 million units to 5.2 million units and was 5% above July, 2008.  This is the first time in nearly four years that sales were higher than the previous year.  The 7% increase from May was the largest monthly gain in ten years.

The $8,000 Federal rebate and the highest affordability record in years were primary drivers of the gain.  Distressed homes were 31% of the total, a reduction from previous months.  

The May existing home data was published today by the NAR.  Here are the key points.