More foreclosures on way in US, says Obama

The US property market will experience further foreclosures over the course of this year, President Barack Obama has said.

In a speech on the US economy, Mr Obama claimed there are "glimmers of hope" that matters are starting to improve, but noted that the economic difficulties will persist for some time.

He stated: "The severity of this recession will cause more job loss, more foreclosures and more pain before it ends."

Such comments may suggest that the next few months will provide an opportunity for those looking to pick up distressed or repossessed property in the US at bargain prices to do so, before the market recovers.

Some potentially positive signs in the country have already been detected, with the National Association of Realtors (Nar) revealing that its pending sales index was 2.1 per cent up in February.

Nar economist Lawrence Yun said this could translate into a "meaningful" rise in sales in a few months from now.

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