Annualized Existing Home Sales for June dropped 5.1 percent from May, but were still 9.8 percent above the pace a year ago, according to a report released by the National Association of Realtors on July 22.

June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months. “Only when jobs are created at a sufficient pace will home sales return to sustainable, healthy levels,” said Lawrence Yun, NAR Chief Economist.

Note: The RE/MAX National Housing Report on 54 metro areas, which is not annualized, showed a 5.6 percent increase over June 2009 sales.

All Housing Types:
1. June Inventory: 3.99M, +2.5% from May, +2.8% from June 2009
2. Months Supply: 8.9 months, up from 8.3 months in May.

June Practitioner Survey:
1. Distressed properties made up 32% of all sales (up from 31% in May).
2. First-Time Buyers purchased 43% of all homes sold (down from 46% in May).
3. Investors accounted for 13% (down from 14% in May).

Mortgage Interest Rates:
1. June 2010 = 4.74% (June 2009 = 5.42%)
2. May 2010 = 4.89%
3. April 2010 = 5.10%
(National average commitment rate from Freddie Mac)

Updated 7/22/10

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.

Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009. [Read more...]

National Association of Realtors Exisiting Home Sale Prices may09

U.S. Economic Outlook: July 2009

Home Valuation Code of Conduct – Home Appraisals -IMPORTANT
Other regulatory changes have been implemented by Fannie Mae and Freddie Mac’s adoption of the Home Valuation Code of Conduct (HVCC) on May 1, 2009. NAR Government Affairs is taking several steps to raise concerns about implementation of the HVCC, its effect on consumers, and the use of appraisal management companies (AMCs) by lenders in some areas of the country. HVCC regulations also have the potential to affect closing timelines.

Here is an Information Pack on the issue.

Market Commentary

Housing Recovery Slowed by Economy.  Recovery in our nation’s housing sector has taken a step backward. Most economic and housing measures and indicators suggest continued weakness in the housing markets during the first half of this year. We believe the Case Shiller twenty city home price index will drop another 8 to 12 percent before home prices begin to stabilize. Inventories remain excessive and residential construction activity is at a standstill.

Market Insight

Bank Problems and the Housing Sector.  The U.S. banking system is ailing and further deterioration could have serious negative implications for the economy and housing sector.  First, it is now clear that large banks are too big to fail and that creates perverse incentives. Second, taxpayers via government injections are paying for the bailout of banks and that brings up fairness issues. Third, [Read more...]