Sunny states top US foreclosure table

The 26 cities in the US with the highest foreclosure rates are in four states, a new report has revealed.

California, Florida, Nevada and Arizona account for the urban areas with populations of at least 200,000 that have seen the most repossessions, the RealtyTrac first quarter report into metropolitan foreclosures found.

Las Vegas was top of the list with 4.48 per cent of properties receiving a filing during the first three months of 2009, with Merced in California second and Florida's Cape Coral-Fort Myers urban area third.

Noting that certain urban areas have been hit hardest by the housing crisis, RealtyTrac's chief executive James Saccacio noted this has attracted bargain hunters.

"Sales activity appears to be increasing in some of these markets as home prices have fallen to levels that are attractive to first-time homebuyers and investors," he observed.

In a speech earlier this month on the US economy, President Obama said there will be more foreclosures to come due to the continued effects of the recession.