WASHINGTON (AFP) — US home foreclosures rocketed 55 percent in the past year, a private research report showed Thursday underlining that the American property market remains mired in a troublesome downturn.
The survey, compiled by the California-based research group RealtyTrac, said that foreclosure filings, including default, auction sale notices and bank repossessions, spiked 55 percent in the 12 months to July.
On a monthly basis, foreclosure filings increased eight percent in July affecting 272,171 properties, accelerating from the three percent rate recorded in June.
"Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July," said James Saccacio, RealtyTrac's chief executive.
The national survey revealed that one in every 464 US households received a foreclosure filing during the month as housing market woes continued to plague the world's largest economy.
America's housing market has been in a slump for over two years, but some economists believe the market could stabilize by early 2009.
Former Federal Reserve chairman Alan Greenspan told the Wall Street Journal in an interview published Thursday that he also expects the housing meltdown to ease next year.
"Home prices in the US are likely to start to stabilize or touch bottom sometime in the first half of 2009," the former Fed chief said.
Home sales have been volatile in recent months -- sales fell 2.6 percent in June after rising 2.0 percent in May -- and some areas are feeling the strain more than others.
The RealtyTrac report showed that foreclosure activity remains high in the states of California, Florida and Nevada.
Home sales have tanked and foreclosures have jumped in California, Florida and Nevada -- particularly around the gambling hub of Las Vegas -- as the three states saw a bonanza of speculative construction during a multiyear boom before the property market entered a slump in early 2006.
Some major banks have tightened lending amid the housing downturn as they seek to stem substantial losses tied to mortgage investments, applying a further brake to housing activity.
The administration of US President George W. Bush has, however, taken various initiatives in a bid to jump start the market.
Bush signed a sweeping housing rescue plan into law last month which is designed to help 400,000 homeowners avert foreclosure and bolster ailing mortgage finance giants, Freddie Mac and Fannie Mae.
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