So this is an article I have summarized from the New York Times...The data below refers to July numbers, so it should be interesting to see how the proposed Bailout will affect these numbers. 

More Americans are wading into the housing market last, lured by falling prices that helped send sales to their highest level since February. According to the National Association of Realtors, around a third of properties bought in July involved foreclosed homes which are being bought at Bargain-Basement prices.  These distressed sales have helped lead to declining home values across the country, creating a problem for many Americans to sell their homes for more than they paid or even break even.

Prices of previously owned homes were 7.1% lower in July, versus last July.  Additionaly, the number of homes for sale jumped 3.9% adding to the supply problem. Sales of previously owned homes, which make up most of the nation's housing supply, rose 3.1 percent in July, the biggest monthly increase since February 2007.  At the current sales rate, it would take 11.2 months to work off the entire supply of previously owned homes on the market. These figures suggested to some economists that the bulk of the decline in home sales had already occurred.

One of the most concerning factors, relative to last year, is the large number of transactions involving foreclosure. Some of the prices, that banks are accepting is breathtaking.  For many owners, desperation appears to be driving sales; they simply have no other alternative.

A year ago, sales of distressed properties made up less than 10 percent of total sales, said one economist. Until this year, distressed sales accounted for so few transactions, economists didn't even look at them as a separate category.  In July they hit the highest number on record.