Three US regions are again showing high foreclosed homes rates as the credit crunch continues to bite across America.
South Florida saw 11,715 mortgage foreclosures in August 2008, an increase of almost 280 per cent on the same month in 2007.
In the Phoenix region of Arizona foreclosures are up 23 per cent year on year, a figure which means nearly three in 100 homes are being handed to the bank.
In Northern California, notice of defaults and notices of trustee sales jumped 37 percent from July 2008 to August 2008.
The figures, from Default Research, show America’s real estate market has some way to go before it returns to normal, despite slight signs of recent recovery in some areas.
Serdar Bankaci of Default research said:
“The South Florida real estate market is continuing to struggle. Median prices have been slowly coming down while inventories have remained relatively constant.”
However, he also said “positive signs” had been seen in commercial property markets and in sales involving foreign property investors.
Foreclosed homes are often sold off at low prices as banks look to wash their hands of time-consuming properties, creating opportunities for professional property investors.
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