US foreclosures are 27% less expensive for buyers

Potential investors to in the US property market may be interested to know that distressed homes in the country are selling at an average of 27 per cent less than other real estate.

Furthermore, almost a third of all transactions taking place over the Atlantic involve property that is in some stage of mortgage distress, the latest data from RealtyTrac shows.

The news could lead to an increase in the number of individuals looking for Florida property, with foreclosure sales currently accounting for at least a third of all purchases.

"The discount will probably stay between 25 and 30 per cent as lenders carefully manage the number of new foreclosure actions in order to avoid flooding the market," said senior vice president for marketing Rick Sharga.

"We're clearly creating more properties that will be sold at distressed prices than the market is absorbing."

According to Radar Logic, the oversupply of housing and increasing number of foreclosed homes on the market could be holding back the US real estate recovery.

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