US foreclosure supply 'will increase'

The supply of foreclosed properties for sale will not dry up any time soon, it has been predicted.

Homes in the country are currently receiving filings at a rate of 6,600 per day and the Centre for Responsible Lending has said the situation will deteriorate, reports Reuters.

Although this could be bad news for those losing homes, it may provide investors with many properties to buy at cut prices.

Those who do so may need to undertake a long-term strategy to make a significant capital return, however, as Celia Chen of Moody's Economy.com told the news agency it could take many years for prices to return to 2006 levels.

Despite this, there have been some signs of increasing values in the country, such as those provided by the S&P/Case-Shiller Home Price Indices for July.

This showed that in 18 of the 20 largest urban centres in the country, prices rose during the month.

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