The US housing market is facing new downward pressure as holders of subprime-mortgage bonds flood the market with foreclosed homes at prices that are much lower than where many banks are willing to sell.

While nationwide figures are scarce, a review of thousands of foreclosures in the Atlanta area shows that trusts managing pools of securitized mortgages sold six times as many properties as banks during the six months ended 31 March. And homes dumped by subprime bondholders sold for thousands of dollars less on average than bank-owned properties, the data show.

Wall Street Journal