US foreclosures continue to rise

UK property investors still seeking a good deal on the other side of the Atlantic will be encouraged by news that there is still a glut of bargain foreclosed property to choose from.

The most recent figures from RealtyTrac have revealed that the number of distressed properties entering the US market has risen by seven per cent during the first three months of this year, compared with the last quarter of 2009.

"Foreclosure activity in the first quarter of 2010 followed a very similar pattern to what we saw in the first quarter of 2009," James J Saccacio, chief executive officer of RealtyTrac, explained.

"[With] a shallow trough in January and February followed by a substantial spike in March."

The news may interest property investors looking for cheap property in the US, with Nevada, Arizona and Florida the top destinations for foreclosed housing.

However, one encouraging sign is the increasing number of first-time buyers who are deciding to enter the market.

Research conducted by Campbell Surveys has shown that the demographic accounted for 48.2 per cent of all purchasers during March.

Property tycoons Warren Buffet and Sam Zell have predicted that the real estate market in the US will begin its recovery by next year.

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