US property faces foreclosure "spike", says expert

The number of foreclosures in the US is on course for a "spike" in the summer months, it has been predicted.

Housing research firm RealtyTrac revealed that the number of notices served in April amounted to one in 374 American homes, up nearly one per cent on March and 32 per cent on a year earlier, marking a new record high.

Chief executive of the firm James Saccacio said that due to moratoriums expiring, the bulk of these processes were at the early stage and so a "spike" of repossessions is likely to occur in the summer.

Such a situation could provide a larger supply of bargain properties for investors to acquire, particularly in the states with the highest foreclosure rates such as Nevada, Florida and California.

Commenting on the situation, CNN Money suggested now could be a good time to buy, even though prices are likely to continue falling for now.

It advised that those who do so should consider the quality of what they are buying and the local amenities before parting with their money, rather than just the price.

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