Nationwide, there were 27,064 new foreclosures during May 2006 -- an increase of 16.6 percent compared to April 2006. The total number of foreclosed homes available for sale in the United States climbed 1.9 percent from the previous month, totaling 89,327 during May.

"The over paying for homes by many buyers in the past couple of years fueled by the availability of low interest rates is really starting to play out in the real estate market," said Foreclosure.com President and CEO Brad Geisen. "The result is we're clearly seeing a buyer's market emerge, but the question that remains is how far will it go?"

Foreclosure.com maintains America's largest and most accurate database of residential foreclosures. Its data, which tracks foreclosures county-by- county, state-by-state, in real time, is used by a variety of investors to assist in making informed purchasing decisions.

Increasing foreclosure rates during May in California and Florida contributed to an overall national upward trend in foreclosed homes, according to new Foreclosure.com data. Additionally, foreclosure rates rose significantly in Alabama, Louisiana and Mississippi, each of which had been experiencing a lower than normal foreclosure rate following Hurricane Katrina.

"In most regions of the country, buyers are currently in the driver's seat when it comes to real estate transactions," Geisen said. "The continued rise in interest rates, which affects monthly housing costs for owners with adjustable-rate mortgages, is triggering a rise in foreclosures and a softening of home sales across the board."

"In essence, this creates a 'perfect storm' for investors who aren't deterred by higher interest rates," Geisen said. "Having access to timely foreclosure data is going to be more important than ever for individuals seeking to make wise purchases -- whether they are experienced real estate investors or first-time homebuyers."

Last Updated ( Tuesday, 27 June 2006 )