The supply of foreclosed homes that banks need to sell is rising again, signalling further downward pressure on home prices in some parts of the US.

Mortgage analysts at Barclays Capital in New York estimated that banks and mortgage investors held a total of 645,800 foreclosed homes in January, up 4.6% from 617,286 a month earlier.

According to Barclays, the supply peaked at around 845,000 in November 2008 and then declined through 2009.

Wall Street Journal